Global law firm Ashurst has successfully facilitated a strategic investment agreement between Mitsubishi Corporation and Eagers Automotive. Under this agreement, Mitsubishi will acquire a 20% stake in both easyauto123, Eagers’ independent used-car business operating in Australia and New Zealand, and Carlins, Eagers’ used-car auction company. This collaboration signals a significant move in the competitive automotive sector.
The establishment of a new holding company will see Eagers retaining an 80% ownership while Mitsubishi takes the remaining 20%. This partnership aims to explore joint initiatives and business opportunities within the automotive and mobility sectors, particularly focusing on the innovative easyauto123 business model. Eagers Automotive stands as Australia’s largest automotive dealer group, representing over 50 brands across the region, while easyauto123 is recognized as the country’s largest independent used car retailer.
Ashurst provided comprehensive legal support to Mitsubishi throughout the transaction process. This included business restructuring, due diligence, regulatory approvals, and negotiation of transaction documents. Notably, New Zealand law firm Bell Gully assisted with aspects of the transaction pertaining to New Zealand law.
In addition to the acquisition stake, Mitsubishi has also committed $50 million to Eagers through a strategic placement. This investment forms part of Eagers’ broader capital raising initiative aimed at funding its strategic investment in CanadaOne Auto. Ashurst advised on matters related to the Australian Securities Exchange (ASX) regarding this placement.
The team at Ashurst was led by partner Natsuko Ogawa, supported by a diverse group of professionals specializing in various legal fields. Key contributors included senior associate Shojeeb Alam, counsel Peter Moh, and associates Phoebe Phan and Janet Chhean in the Corporate Transactions division. Additional expertise was provided by partners and associates in areas such as intellectual property, employment, dispute resolution, finance regulatory, competition, insurance, global loans, real estate, and digital economy transactions.
This strategic investment highlights the growing importance of collaboration in the automotive sector, particularly in a dynamic market landscape. Mitsubishi and Eagers Automotive are poised to leverage their combined strengths to enhance their operations and customer offerings in Australia and New Zealand.
