Eagers Automotive (ASX:APE) struck a binding deal to acquire the remaining 20% interest in the BYD Retail Joint Venture for a combination of cash and ordinary shares, according to a Monday filing with the Australian bourse.
The transaction, which will make EV Dealer Group a wholly owned subsidiary of Eagers Automotive, is expected to be 5% to 5.5% earnings accretive for Eagers shareholders based on the pro-forma underlying operating profit before tax for the 12 months through June.
The deal is expected to complete before the end of October.
Shares of Eagers Automotive gained 4% in recent Monday trade.
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