CAR Group (ASX: CAR) – CAR Group Completes First Brazil Acquisition

CAR Group Limited has announced that its Brazilian subsidiary webmotors will acquire a 51% stake in Auto Avaliar for R$543 million, equivalent to approximately A$144 million. Auto Avaliar is a digital B2B platform that connects used vehicle dealerships, independent retailers and rental companies, facilitating vehicle valuations and trades between these market participants. The transaction represents CAR Group’s continued expansion into complementary automotive marketplace segments within its established Brazil operations.

Auto Avaliar’s focus on B2B marketplace infrastructure in vehicle trading differs from webmotors’ consumer-facing marketplace model. The acquisition allows CAR Group to diversify its Brazilian revenue streams beyond direct consumer trading into the wholesale and dealer network segments. Used vehicle trading between dealers and rental companies represents a substantial market with its own pricing dynamics and participant needs, potentially providing CAR Group with multiple revenue generation avenues within the same geographic market.

Management has indicated the transaction is not expected to materially impact CAR Group’s consolidated revenue or earnings. This statement suggests either the deal represents a modest percentage of group revenue, the integration costs will absorb near-term earnings accretion, or both. Investors interpreting this guidance should consider that Auto Avaliar’s contribution may grow over time as CAR Group invests in platform integration and expansion, though such future performance remains subject to execution and market conditions.

The acquisition remains contingent on regulatory approvals from two Brazilian authorities: the Administrative Council for Economic Defense (CADE), which reviews competition impacts, and the Central Bank of Brazil, which oversees financial sector transactions. CADE approval is the primary regulatory hurdle, given the transaction involves an established market participant acquiring a competitor in the used vehicle valuation space. The timing of these approvals is uncertain and may take several quarters to complete.

CAR Group’s broader strategy involves operating diverse automotive marketplaces across multiple geographies. Current operations span Australia (carsales), South Korea (Encar), the United States (Trader Interactive), Chile (chileautos) and Brazil (webmotors and now Auto Avaliar). This geographic and segment diversification reduces exposure to any single market, though it also requires ongoing capital deployment and management attention across distinct regulatory environments and consumer behaviours.

Investors monitoring this transaction should track the regulatory approval timeline from CADE and the Central Bank, expected completion date once approvals progress, and management commentary on Auto Avaliar’s integration into webmotors operations. The materiality question is worth revisiting post-completion, as management’s current immateriality assessment could change as Auto Avaliar’s performance becomes visible in financial results. Any material changes to deal terms or conditions during the approval process would warrant further attention.

View the full ASX announcement (PDF)

About CAR Group Limited (ASX: CAR)

CAR Group Limited is an ASX-listed digital marketplace operator specializing in online vehicle sales across multiple countries including Australia, New Zealand, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, and North America. The company’s flagship platform, carsales.com.au, is the dominant online automotive marketplace in Australia. The group generates revenue from its global digital marketplace operations and is classified within the Communication Services sector of the S&P/ASX 200 index.

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