Permodalan Nasional Bhd (PNB), Malaysia's largest asset manager, is considering combining Sime Darby Motors and Perusahaan Otomobil Kedua (Perodua) to form a local automotive conglomerate worth more than 10 billion ringgit ($2.15 billion), according to two sources.
According to sources familiar with the situation, the state-owned PNB is consulting with advisers about various options, including first merging the holding companies of the two units and then forming a larger automotive group that could help spearhead the development of Malaysia's electric vehicle (EV) sector.
The plan comes as the Malaysian government pushes to develop the country's EV sector as competition in Southeast Asia heats up to become the main player or a hub in the global EV production and supply chain.
PNB, which manages over 300 billion ringgit in assets, could drive such a deal because it owns nearly half of Sime Darby Motors' parent company, Sime Darby, and is also the largest shareholder in Perodua's top stakeholder, with a direct 10% stake in Perodua.
PNB owns 60.6 percent of industrial conglomerate UMW Holdings, which owns 38% of Perodua, the country's largest automaker by market share.
Perodua's website shows other shareholders include Daihatsu, MBM Resources, and Mitsui & Co.
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