ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

ComfortDelGro to take full control of Australian bus JV

Acquisition of partner Cabcharge's share continues aggressive expansion outside of home base Singapore

SINGAPORE -- Singapore-based transportation company ComfortDelGro announced on Wednesday that it will take full control of its joint venture with Australian bus operator Cabcharge Australia for 186 million Australian dollars ($122 million).

ComfortDelGro currently owns 51% of the joint venture, named ComfortDelGro Cabcharge. The Singaporean company will acquire the remaining 49% of the joint venture once approval from the Australian authorities is obtained.

The joint venture was established in 2005 after ComfortDelGro and Cabcharge Australia jointly acquired Australian bus operator Westbus Group, marking ComfortDelGro's entry into the Australian market. Since then, the joint venture has been growing its fleet of buses in Australia through a series of mergers and acquisitions. It now has a combined fleet of 1,712 buses and around 2,300 employees, making it one of the largest private bus operators in the Australian states of New South Wales and Victoria, with strong footholds in major cities, including Sydney and Melbourne.

ComfortDelGro CEO Kua Hong Pak said in a statement that the acquisition will allow the company to "seek new opportunities to grow the business" in Australia, where the company sees growth potential.

To compensate for the small domestic transportation market in Singapore, ComfortDelGro has expanded aggressively in overseas markets. In the most recent quarter ended in September, overseas business made up 41.3% of the total operating profit. The Australian business accounted for 12.5% of the operating profit and was the third-largest contributor after Singapore (58.7%) and the U.K. and Ireland (17.6%).

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media