(Alliance News) - Inchcape PLC on Tuesday announced the completion of its acquisition of Latin America's largest independent automotive distributor Derco for GBP1.3 billion.

The London-based automotive distributor said the Derco acquisition would extend Inchcape's "global leadership in automotive distribution".

Derco is the largest multi-brand automotive distributor by volume, with operations in Chile, Peru, Bolivia and Colombia.

Inchcape Chief Executive Officer Duncan Tait said: "The completion of the transformational acquisition of Derco is an important step in our ambitious growth journey. The combination brings together two best-in-class operators in highly attractive and fast growth markets within Latin America, and significantly expands our original equipment manufacturer brand portfolio."

"The enlarged business will provide exciting opportunities for our colleagues, OEM partners, dealers and consumers," he said.

The company said Juan Pablo Del Rio, having been nominated by Derco's family owners, would join Inchcape's board as a non-executive director.

"Inchcape and Derco are highly complementary businesses, enjoying a strong strategic and cultural fit. The combined strengths of both companies, including Inchcape's undisputed leadership in digital and data, will provide exciting opportunities for colleagues across the enlarged business," Del Rio said.

Inchcape said it expects its performance for financial 2022 to be in line with its outlook issued on October 27, with an adjusted pretax profit at the higher end of GBP350 million to GBP370 million.

Inchcape shares were up 1.2% trading at 830.00 pence per share on Tuesday morning in London.

By Harvey Dorset, Alliance News reporter

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