Carsales is looking to buy an additional 40% stake in Webmotors, the number 1 car selling platform in Brazil.
👉 Background: The price of second-hand cars jumped up to 60% during COVID lockdowns according to Moody’s Analytics. Thankfully, this has tapered off now.
👉 What happened: As a result, Carsales saw 37% growth in its revenue for the six months to December 2022. To continue this momentum, Carsales is looking to buy an additional 40% stake in Webmotors, the number 1 car selling platform in Brazil.
👉 What else: This ain't its first rodeo. Carsales already has a 30% stake in Webmotors, so this purchase would give it a 70% stake. And this means Carsales will have a controlling stake in the Brazillian company, which investors like a LOT.
💡 Having a controlling stake in a company gives an investor greater control over the direction and management of that company.
💡 For example, the majority owner has power to make key business decisions or the power to appoint a majority of the board of directors.
💡 And for Carsales, this means they’ll now have a pretty chunky ownership in businesses across the world. We’re talkin’ Australia, Brazil, South Korea and the US - #global.
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