Indonesian billionaire Prajogo Pangestu is expanding his business empire by purchasing a major car dealership network. His company, Chandra Asri Pacific, has agreed to buy Jardine Cycle & Carriage’s automotive business in Malaysia and Singapore. The deal is valued at S$265 million, about $208 million in US dollars.
This massive purchase marks the very first time that the energy and chemical giant is stepping into the automotive and vehicle industry. The move fits perfectly into Chandra Asri’s larger plan to transform itself into a major regional provider of energy, chemicals, infrastructure, and clean mobility solutions.
It also builds on the company’s recent growth in Singapore, where it recently bought the Esso-branded fuel retail network and partnered with Glencore to buy Shell’s refinery assets. On the other side of the deal, Jardine Cycle & Carriage has a long history, operating since 1899.
In Singapore, the company runs six automotive facilities and represents top global car brands like Mercedes-Benz, Kia, and Mitsubishi. They also sell pre-owned vehicles through their Republic Auto brand, provide vehicle leasing options, and supply electric vehicles to logistics companies.
Meanwhile, in Malaysia, they operate a strong network of 11 Mercedes-Benz sales and service centres. Jardine decided to sell this part of its business to unlock immediate value and raise money to pay off corporate debt. This sale will allow Jardine to focus on its main target markets, Indonesia and Vietnam.
The deal is currently waiting for official approvals from various business partners and standard closing conditions. Prajogo Pangestu, one of Indonesia’s richest people with a net worth of $17.2 billion, continues to diversify his business beyond traditional timber and petrochemicals.
