Global law firm Ashurst has facilitated a significant investment agreement for Mitsubishi Corporation, which will acquire a 20% stake in easyauto123 and Carlins. This strategic move, in collaboration with Eagers Automotive, positions Mitsubishi to enhance its footprint in the automotive sector across Australia and New Zealand.
Under this agreement, Mitsubishi will invest in easyauto123, Eagers’ independent used-car business. In addition, Mitsubishi will gain an indirect interest in Carlins, which operates as Eagers’ used-car auction company. A new holding company will be formed, with Eagers retaining an 80% ownership stake and Mitsubishi possessing the remaining 20%. This arrangement will enable both companies to explore joint initiatives and business opportunities within the automotive and mobility sectors, particularly focusing on the easyauto123 business model.
Details of the Strategic Investment
Eagers Automotive is recognized as Australia’s largest automotive dealer group, representing more than 50 brands across the region. Easyauto123 stands as the country’s largest independent used-car retailer, bolstered by the national auction services provided by Carlins, which also extends operations to Auckland, New Zealand.
Ashurst played a crucial role in advising Mitsubishi on various aspects of this transaction, including business restructuring, due diligence, regulatory approval processes, and transaction document negotiations. New Zealand law firm Bell Gully contributed by advising on the New Zealand law elements involved.
In a related financial maneuver, Mitsubishi invested $50 million in Eagers through a strategic placement, part of Eagers’ capital raising efforts aimed at funding its strategic investment in CanadaOne Auto. Ashurst also provided guidance concerning ASX regulations in relation to this placement.
Ashurst’s Comprehensive Support Team
The legal team from Ashurst was led by partner Natsuko Ogawa and included several specialists to address different facets of the transaction. Senior associate Shojeeb Alam, counsel Peter Moh, and associates Phoebe Phan and Janet Chhean focused on Corporate Transactions.
Further support came from partners such as Kellech Smith, who handled intellectual property, and Jane Harvey, who oversaw employment matters. Dispute resolution was managed by partner James Clarke, while finance regulatory advice was provided by partner Hong-Viet Nguyen.
The diverse team included experts in competition from partner Justin Jones, insurance from partner Rehana Box, global loans from partner Campbell Johnston, real estate from partner Jason Cornwall-Jones, and digital economy transactions from partner Emma Butler.
This strategic investment marks a pivotal moment for Mitsubishi as it seeks to strengthen its position in the automotive landscape of Australia and New Zealand, leveraging Eagers Automotive’s extensive operations and market reach.
