“It’s a significant acquisition; it’s the number one battery brand in Turkey and the Middle East,” Theo Loock, chief executive officer of the automotive products manufacturer, Metair Investments told CNBC Africa.
Metair [DATA MTA:METAIR INVESTMENTS ORD.]shares climbed 5.9 per cent to 35.25 rand after the announcement of the acquisition which is worth 217 million US dollars.
“The deal automatically lets us meet our 50/50 strategy , it gives us spare capacity that’s what made at about 2 million batteries per annum and gives us access to the European market,” said Loock.
He added that the deal will also give Metair the opportunity to tap into countries with strong Gross Domestic Product growth, such as Turkey and Russia.
Despite the challenges that the South African automotive strike has had on Metair, Loock is confident that the acquisition will pull the company out of the rut by providing them with stability and geographical diversification.
“Geographical diversification balances out the risk with what’s happening in South Africa. That was the strategic objective of buying the Mutlu Aku battery business in Turkey,” he added.