ABN - General Motors (NYSE:GM) will sell the majority ownership stake in its East African business unit to Japanese car maker Isuzu Motors (TYO:7202), after an agreement was reached this week.
The Asian firm has bought a 57.7% stake in General Motors East Africa (GMEA), which will become a subsidiary of Isuzu under the new name Isuzu East Africa.
Other shareholders in the business unit include Industrial and Commercial Development Corp, which holds a 20% stake, along with Centum Investments and Itochu Corp, which own 17.8% and 4.5% shares respectively.
General Motors has held a presence in East Africa since 1975, when GMEA was formed under a joint venture between the American multinational and the Kenyan government.
GMEA's factory in Nairobi assembles Isuzu-badged light trucks and buses, as well as importing and selling Isuzu pickup trucks and GM-branded Chevrolet passenger cars in Eastern Africa.
The car manufacturer will maintain its two other business units in Africa, General Motors South Africa and General Motors Egypt.