NAIROBI, Kenya, March 1 – Isuzu motors is set to acquire General Motors East Africa as it seeks to a buyout 57.7 percent of the company making the largest shareholder.
The deal which is subject to regulatory approval will see Isuzu also taking over the management of the company including the name as General Motors will now be called Isuzu motors.
General Motors Africa and Middle East President and Managing Director Mario Spangenberg said the decision was informed by Isuzu’s successful performance in the industry, where it has remained the leader in the past five years unbeaten.
“95 percent of our sales in Kenya are Isuzu products, so it is only natural to hand over the business,” Spangenberg said adding that only 5 percent of sales made are General Motors products,” he said.
Currently, GM enjoys 35.1 percent market share in the country, making it the market leader.
General Motors will be re-branded to ‘Isuzu East Africa’ as the Japanese motor maker takes over the management of the company.
GM East Africa Managing Director Rita Kavashe – who will take over as the MD of the newly branded company – said that the buyout is subject to the approval of the Competition Authority of Kenya and COMESA where if approved, will be effective in a month’s time.
