Australian car dealership Eagers Automotive has announced plans to purchase a 65% share in the holding company of CanadaOne, a Canadian dealership group, for a total consideration of A$1.04bn ($687m).
The move aims to expand the Australian firm’s presence in the Canadian market.
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The transaction, which involves entities linked to CanadaOne’s founder and CEO Pat Priestner, includes a cash payment of A$658m and A$386m worth of exchangeable shares of Eagers.
Consequently, the valuation of the Canadian entity stands at A$2.71bn, inclusive of debt.
Following the deal, CanadaOne’s shareholders are anticipated to become the “Eagers’ second-largest shareholder”.
Priestner will maintain his leadership role as CEO of CanadaOne, supported by the existing senior management team.
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By GlobalDataThe company’s headquarters will continue to operate out of Edmonton, Alberta.
CanadaOne said that the finalisation of the acquisition is targeted for the first quarter of 2026, pending the receipt of necessary approvals from regulatory authorities, original equipment manufacturers (OEMs), the minister of Industry, and other standard consents.
CanadaOne Auto manages 42 franchised dealerships.
Eagers’ primary business activities include managing new and used car dealerships, offering services and parts, and facilitating related consumer finance.
Priestner said: “By combining our deep local knowledge with Eagers’ international retail expertise, resources and relationships, we are building a platform for long-term, strategic growth that will drive innovation for decades to come.
“For us, and maybe many others in the Canadian automotive retail industry, this partnership provides a unique opportunity for Canadian dealerships considering succession and legacy.”
In a parallel development, Mitsubishi Corporation (MC) announced its decision to subscribe to newly issued shares of Eagers via a strategic investment.
The move is said to establish a strategic partnership to enhance collaboration and explore new ventures in the automotive and mobility industries.
In addition, MC reached an agreement to invest in Eagers Automotive’s independent used-car business, easyauto123, which operates in New Zealand and Australia, and also “an indirect interest” in Carlins, the group’s vehicle auction company.
MC said that a new holding company will be created, with Eagers holding an 80% stake and MC owning the remaining.
The partnership and investment in easyauto123 will enable MC to broaden its mobility service business in Australia, which will function independently alongside its current operations.
Mitsubishi Motors Corporation reported a 9.3% decline in global production to 78,572 units in July 2025, down from 86,670 units in the same month last year.
