The Chinese automotive market, which grew 32 percent in 2010, will offer immense opportunities for Toll to leverage its automotive capabilities.

This transaction allows Toll to partner with a local company to provide more efficient and effective supply chain services in a proven and cost effective manner in China.

Paul Little, managing director of Toll Group, said: “Tianjin Anda provides finished vehicle transport, storage and processing services for leading brands such as FAW, Toyota, BMW, Peugeot-Citroen and Chery. It is based in the city of Tianjin, a major manufacturing centre and China’s largest import terminal, which is close to Beijing and well connected to the main national highways.”

The acquisition remains subject to Chinese regulatory approvals which are anticipated to take three to six months. Toll expects the deal to be earnings per share accretive in its first year.

In 2010, Tianjin Anda generated revenue of over A$58m. Toll will initially acquire 40 percent of the privately owned business with the option of moving to a majority stake over the next two years and to increase that further over five years.

In February 2011, Toll Group has acquired Dubai-based sea-air services provider SAT Albatros.

Will the acquisition benefit Toll Group?

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