AutoWallis, Salvador Caetano to buy Renault Hungária
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AutoWallis Plc. is purchasing Renault Hungária Kft. in cooperation with the Portuguese Salvador Caetano Group, thus attaining exclusivity for sales of vehicles of Renault, Dacia, and Alpine brands in Hungary, according to a press release sent to the Budapest Business Journal.
Under the deal, AutoWallis and Caetano will create a new company (AutoWallis Caetano), with each holding a 50% stake, to purchase Renault Hungária, which is the distributor of the Renault, Dacia, and Alpine brands in Hungary.
As a result, the two vehicle sales and mobility service provision companies will gain equal shares in Renault Hungária, which had revenues of HUF 70.3 billion in 2021, providing all the conditions necessary for the transaction are met. The start of operations of the new organization is scheduled for July 1, 2022. AutoWallis believes that this project can be a launchpad for further future cooperation with both Caetano and Renault Group. In 2021, Renault Hungária sold a total of 8,139 Dacia vehicles, making it the seventh-largest brand on the Hungarian market; in the same year, 5,207 Renault vehicles were sold.
"The method used to purchase Renault Hungária is unusual not only on the Hungarian, but also the entire European market, as it is based on the strategic cooperation of two companies that work in the same industry but in different geographic environments, meaning they are not direct competitors," explained Gábor Ormosy, CEO of AutoWallis.
He added that in addition to the three brands involved, AutoWallis will continue its independent growth, developments, acquisitions, and the implementation of its strategy in other areas.
With this step, AutoWallis will continue to bolster its market position with the possible addition of major brands to its wholesale portfolio, the CEO noted.
Philippe Buros, senior vice-president, sales & marketing and services of Renault Group said, "The Salvador Caetano Group is a long-standing partner of the Renault Group whereas AutoWallis Group is a recognized distributor in the Central and Eastern European region. They were chosen for their complementarity. Thanks to this agreement, I am very confident that Renault Group will achieve its strategic ambition in Hungary.”
Miguel Ramos, CEO of Salvador Caetano Group said “This agreement for the Hungarian market is another step in Salvador Caetano's partnership with Renault Group and our expansion plan in Europe. Our collaboration with AutoWallis Group opens an exciting opportunity to develop further the pillars of our strategy and contribute to the implementation of Renaulution in Hungary.”
Welcoming the transaction, head of AutoWallis’s distribution business unit Andrew Prest said that Renault is a bold and iconic brand with huge market recognition and a remarkable record for innovation, while Dacia vehicles are famed for their reliability and affordability. He added that Renault Group is at the forefront of new technology development and European market leader in electric vehicles and it will be a privilege to represent these brands in Hungary and a great opportunity to partner with Salvador Caetano.
Prest emphasized that the transaction demonstrates that AutoWallis already has importer experience that is substantial enough to attract the attention of international vehicle market players.
AutoWallis is present in 14 countries in the region, while the Portuguese Salvador Caetano has significant experience in vehicle sales primarily on the Iberian Peninsula and in South America and Africa.
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