Eagers Buys Remaining 20% Stake in BYD Retail Venture

Key Facts

Australian company Eagers Automotive has agreed to buy the remaining 20% stake in EV Dealer Group, the operator of its joint BYD retail venture in Australia, Investing.com reported, citing Reuters on October 26, 2026. The deal gives Eagers full ownership of the entity that runs the retail business; it does not involve acquiring Chinese company BYD or its brand distribution rights in Australia. Eagers will pay for the stake with a mix of cash and shares, but has not disclosed the deal value. The move shifts Eagers from 80% ownership to full ownership of the joint venture. The company said the deal is expected to add between 5.0% and 5.5% to earnings, making its disclosed financial impact a key part of the agreement.

Eagers expects to complete the deal by the end of October 2026, days after announcing it, according to Investing.com. The report did not specify the consideration Eagers will pay for the stake, and said funding would combine cash and shares. The terms disclosed for the current agreement differ from those of the earlier deal that raised Eagers' stake in the venture to 80%, when the company disclosed a specific value and the split between cash and shares. This time, the available financial information is the expected earnings impact, an increase of between 5.0% and 5.5%. The deal details did not include a stated objective related to operational efficiency or electric vehicle market growth.

Eagers shares rose 7% to A$20.05 after the deal was announced, Investing.com reported, citing Reuters. The share move followed the announcement of the purchase of the remaining stake, while the company forecast that the deal would support earnings by 5.0% to 5.5%. The source did not specify a deal value that prompted the move, as Eagers said consideration would comprise cash and shares without disclosing the amount. The rise reflects the market's immediate response to the acquisition announcement, while completion remains expected before the end of the month. No further details on the share performance after the announcement were available.

The partnership between Eagers and BYD dates back to 2022, when the two parties formed a joint venture that made Eagers the Chinese company's exclusive national vehicle distributor, according to the report. In 2023, Eagers raised its stake in the venture to 80%, with the remaining stake held by EVDirect.com. In its disclosure, Eagers said it acquired an additional 31% of EV Dealer Group on July 3, 2023, for A$70 million. The consideration was split between A$50 million in cash and A$20 million in Eagers shares, lifting its ownership to 80%. By buying the remaining 20% stake, the company is completing the path it began by increasing its ownership of the retail operator.

In 2025, Eagers announced a new long-term agreement with BYD, according to the report. The company said in its disclosure that the new agreement runs for five years, with an option to extend it by a further five years. It also linked the agreement to BYD Australia taking on the role of importer and distributor in Australia, a development in the commercial framework between the two companies. The purchase of the remaining stake in EV Dealer Group forms part of this broader path, but concerns ownership of the joint retail entity. BYD's distribution rights in Australia remain separate from ownership of that entity, according to the published deal details.

The deal is expected to close by the end of October 2026, adding, by Eagers' estimate, between 5.0% and 5.5% to earnings. The company has not disclosed the price for the 20% stake, saying only that consideration will comprise cash and shares. The market responded to the announcement with a 7% rise in the shares to A$20.05. These elements frame the deal as the completion of Eagers' acquisition of EV Dealer Group, after its stake reached 80% in 2023. The expected completion date at the end of October is the next stated milestone in the agreement.