Family-owned Al-Futtaim Group, the Dubai-based automotive, retail, electronics and financial services conglomerate, is to acquire a majority shareholding in Associated Motorways (AMW), one of the “crown jewels” of Sri Lanka's corporate sector.
The deal, which is worth in excess of $65 million, means Al-Futtaim will acquire the 51% held by Associated Electrical Corporation and the 20% held by John Keells – both investment holding companies.
"This acquisition is in line with the direction in which [Al Futtaim CEO and family member] Omar Al-Futtaim wants to take the business,” said Bob Farrow, a senior general manager. “We see enormous potential to grow AMW's core business and to expand into new sectors and markets.”
AMW has a range of high volume market leading distributorships such as Suzuki, Maruti, Nissan, Renault, Yamaha, Piaggio, Goodyear tyres, Castrol and BP, as well as ventures in the real estate market.
Introducing the theme of family management to their new acquisition, Al-Futtaim has proposed that the brother of current AMW chairman Ajita De Zoysa succeeds him.
Established in the 1930's, the Al-Futtaim Group operates over 40 companies bearing the Al-Futtaim name in the UAE, Bahrain, Kuwait, Qatar, Oman and Egypt. This acquisition gives the group its first foothold in Sri Lanka.
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