The Philippines' Ayala Group is to acquire a controlling stake in Columbian Autocar Corporation, the local assembler and sole distributor of Kia Motors, according to local reports.
Ayala Corporation is a diversified conglomerate with interests in the real estate, banking, telecommunications, utilities and infrastructure, healthcare and education.
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It is also one of the country's largest vehicle retailing and distribution companies with brands including Honda, Isuzu, Volkswagen and KTM motorcycles.
Local reports suggest Ayala is looking to take a controlling 65% stake in Columbian Autocar which would strengthen its presence in the local vehicle distribution business.
Kia Motors is understood to be unhappy with the recent performance of Columbian Autocar and has backed acquisition by Ayala Group.
Sales of Kia vehicles in the Philippines fell by 29% year on year to just short of 5,200 vehicles in 2018, in a market that has seen blistering growth in the last several years.
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By GlobalDataThe automaker sees Ayala Group as a much stronger partner that will help grow its sales in this country.
The founder of Columbian Autocar, local businessman and governor of Palawan, Jose Alvarez, is understood to have agreed to retain the remaining 35% of the company's equity.
The acquisition is expected to be finalised within two months.
