One of Barbados’ most successful businesses, the Simpson Motors Group is teaming up with an international automotive distributor to embark on a new path.
On Monday, founder of Simpson Motors, Sir Kyffin Simpson announced the merger of the well known local dealership, its regional automotive distribution arm, ITC, and British multinational auto company, Inchcape.
Describing the venture as a “business combination”, Sir Kyffin said the move was critical to what he termed “the next chapter”.
The veteran businessman provided no details about the deal and leading local economist, Jeremy Stephen, believes the details are far too vague to provide a comprehensive analysis.
“The structure of the deal is what matters and that would give you a better idea as to if there’s more investment potentially coming out of England in this dispensation. If it’s just a straight merger, it could be a case where [Sir Kyffin Simpson] may be retiring, and if you read into what was said in the release, you hear the thoughts of somebody who may be looking to step back altogether from the mind and management,” said Stephen.
The economist also noted that it could be a “legacy play” on the part of Simpson that would allow him to hand over a massive amalgamated Caribbean company or increase his portfolio in the United Kingdom.
“The Simpson brand is a very significant brand that stretches all the way into Latin America and the Southern part of North America. Both might be very formidable and both might be similarly valued. So it is an interesting play. I don’t know if it is a legacy play right now or if he’s just looking to exit altogether… but given the stage of the deal right now, it is too early to say,” Stephen added.
On the other hand, he noted that the British multinational might be interested in making its mark in Latin America.
In the meantime, Sir Kyffin noted that business would operate as normal and his team would work closely with its customers, partners and dealers in Barbados and across the region.
Inchcape’s Group CEO, Duncan Taitt welcomed the Simpson Group into its family and noted that the transaction would be subject to customary third-party consents and regulatory approvals.
(KS/PR)
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