Nov 21, 2017 Last Updated 10:19 AM, Nov 20, 2017

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.

@ABNetworkOnline

 

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