Mitsubishi takes 20% stake in Eagers Automotive’s used car business

TOKYO - Mitsubishi Corporation (market cap: $89.7 billion), a Japanese trading giant with a "Good" financial health rating according to InvestingPro, announced Wednesday it has agreed to acquire a 20% stake in a new holding company for easyauto123, the independent used-car business of Australia’s largest automotive dealer group Eagers Automotive Ltd.

The Japanese trading company, which has delivered an impressive 40.2% return year-to-date, will also subscribe for new shares in Eagers through a strategic placement and has entered into a Strategic Partnership Agreement to explore business opportunities across the automotive and mobility sectors, according to a press release.

Under the agreement, Eagers will retain an 80% ownership in the newly established holding company that will oversee easyauto123, which operates in Australia and New Zealand, and Carlins, Eagers’ used-car auction business.

Eagers Automotive represents more than 50 automotive brands across Australia and New Zealand, with operations spanning new and used car dealerships, service, parts, and consumer finance. The company has been in operation for over 112 years.

The partnership aligns with Mitsubishi’s strategy to enhance its downstream mobility services, including parts sales, vehicle maintenance, and auto leasing, which the company has identified as key growth drivers.

"By combining the strengths of both companies, MC aims to contribute its global expertise to create new ancillary business value within easyauto123, and partner with Eagers to scale operations and enhance performance," the statement said.

The companies plan to leverage their customer bases and complementary business strengths to maximize value across the entire vehicle lifecycle.

The financial terms of the transaction were not disclosed in the announcement.

In other recent news, Mitsubishi Corporation released its financial results for the first quarter of fiscal year 2025. The company reported a year-on-year decline in both underlying operating cash flow and consolidated net income. Despite these declines, Mitsubishi is making strategic investments in renewable energy and seafood processing. The company continues to focus on these sectors as part of its growth strategy. Analysts have not provided any upgrades or downgrades following the earnings announcement. These developments highlight Mitsubishi’s ongoing commitment to strategic growth, even in the face of financial challenges. Investors may find interest in the company’s focus on renewable energy and seafood processing as potential areas for future growth.

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