SINGAPORE/BANGKOK — Malaysia’s auto industry is undergoing a government-led mega-merger, bringing together two conglomerates controlling more than half of the market to catch up with the rest of the world’s shift to electric vehicles.
Under a deal announced in August, prominent Malaysian group Sime Darby will buy state-owned investment firm Permodalan Nasional’s 61.2% stake in UMW Holdings for 3.57 billion ringgit ($761 million). The group plans to make an offer for the remaining shares as well, and delist UMW from Bursa Malaysia. Permodalan also owns 50.3% of Sime Darby.