May 26, 2018 Last Updated 11:11 AM, May 23, 2018

General Motors sells majority stake in East Africa unit

car manufacturing plantABNABN - 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.



This Month's Issue

abn v5iCover finalweb