Politis finalises Barloworld buy

Car dealership king Nick Politis has finalised an agreement with listed South African company Barloworld to buy one of Australia’s largest Volkswagen dealerships in a deal worth about $130 million.

Mr Politis, who is chairman of Sydney Roosters rugby league club, bought the business through his private company WFM Motors. The purchase, flagged by The Australian this month, is understood to have been finalised on Tuesday.

“Barloworld is a good South African company and is expanding into other areas,” he said last night. “They are also very big in mining and Caterpillar machinery.”

Barloworld Motor Australia represents Holden, HSV, Mercedes-Benz and Volkswagen with nine dealerships.

Mr Politis has also bought seven dealerships in Melbourne and Sydney, including the Mercedes-Benz dealership in the Melbourne suburb of Brighton, and a dealership on the Mornington Peninsula.

The transaction also includes a Holden dealership in Melbourne’s Glen Waverley and four Volkswagen outlets — two each in Sydney and Melbourne.

The properties of the two Sydney dealerships, worth at least $70m, were included in the sale, sources close to the car dealer said last night.

However, the total value of the transaction is far less than what industry sources previously tipped — between $250m and $500m.

They said earlier this month that Mr Politis was unlikely to be able to secure all nine dealerships, suggesting two would probably be sold if he bought the entire business to avoid market concentration issues.

Mr Politis, a wealthy Sydney businessman in his early 70s, is cashed up after expanding his private business and rebranding it as City Ford, transforming it into one of the largest Ford dealerships in the country.

He owns a 36.96 per cent stake in the listed APA Eagers, Australia’s oldest automotive retail group, a stake that yesterday was worth $319.9m.