Sime-Darby takes over top BMW dealership

Sime-Darby is already the importer for Peugeot and Citroen, and made its first move into retail with a Porsche dealership in the west of Sydney. Its takeover of Brisbane BMW is worth an estimated $85 million for 70 per cent of the company and includes the buy-out of the silent partner in the business, trucking magnate Lindsay Fox. There is a longer-term plan to take full control.

The deal involves Brisbane BMW's two retail outlets, one in the Fortitude Valley strip of motor traders, as well as a repair centre, a Mini outlet and the Lamborghini agency for Queensland. It's taken more than six months to put the deal together, with dealer principals Martin Roller and Marvin Burke to continue on a long-term deal that includes a minority shareholding.

Sime Darby is already ranked in the top five of BMW Group businesses worldwide, selling around 40,000 vehicles a year for the German company. The Brisbane BMW takeover was announced from Kuala Lumpur and Roller has no comment on the deal. But Sime Darby Motors' managing director, Lawrence Lee, says it is a signficant move into Australia.

"As a major regional automotive group, we have been exploring expansion opportunities in new and existing markets," he says. "The acquisitions … will allow us to further consolidate our position in the luxury segment in Australia."

This reporter is on Twitter: @paulwardgover