Sime Darby Berhad said it had completed the acquisition of Australian heavy machinery company Cavpower Group following which the company will become an indirect wholly-owned subsidiary of the group.
Analysts have a positive given Australia’s strong industrial and mining exposure. Sime Darby acquired the entire equity stake in Cavpower Group, a Caterpillar (CAT) dealer, for an enterprise value (EV) of AUD500m (RM1,494.8m). According to Kenanga, the house views the acquisition will strengthen the group’s presence in the booming mining and infrastructure sectors in Australia and is earnings accretive to the tune of 5%.
