According to media reports, Stellantis announced on January 19 that it would acquire a 70% controlling stake in the Brazilian automotive service company DPaschoal, marking the latest move by Stellantis to expand its operations in Latin America. The specific price of this equity acquisition was not disclosed by the company.
In the Brazilian market, Stellantis has been selling components through its automotive stores located in Brazil. Through this acquisition, the company aims to expand its business in the largest economy in Latin America. Stellantis and DPaschoal stated in a joint statement that DPaschoal has 123 stores and 2,800 employees in Brazil.
Prior to this deal, Stellantis also acquired a controlling stake in the Argentine automotive parts chain Norauto last year. Subsequently, the U.S. automotive parts retailer AutoZone expanded its business in Brazil by opening new stores.
Paulo Solti, Vice President of Parts and Service for Stellantis South America, stated to the media, "The automotive parts market in Brazil is very fragmented. DPaschoal ranks second in the industry. After acquiring this company, we will become the largest automotive parts distributor in Brazil and Latin America."
Emanuele Cappellano, President of Stellantis South America, added that DPaschoal's annual revenue is approximately 2.5 billion Brazilian reais (about 507.87 million US dollars), slightly lower than Stellantis' MOPAR parts business in the country.
By expanding its business through the acquisition of DPaschoal's stake and considering the growth in the Latin American automotive parts market, coupled with exchange rates, traders may see potential investment opportunities in the automotive industry stocks and forex trading.
