Demerger of $150Bn Global Automotive Group

Carve Out Planning and Divestment Execution Support Services

Business - Digital - Prof Svcs - MA & D

Client Need

Large Automotive business with revenue’s in excess of $150Billion wanted to sell a significant business group with revenue’s in excess of $60 Billion. The business group to be sold was highly entangled with the rest of the business (many operational systems were shared, and shared service centres were used) particularly with regard to its international sales and distribution centres operating in 30 countries. Carve out planning was performed without knowing the form (financial or strategic buyer) or identity of the new owner and thus several hundred IT TSA’s and SLA’s had to be defined between to ensure business continuity from an IT services perspective.

Our Approach

The Aspire founder helped to define the carve out programme structure and governance to assist both groups from a central management perspective. Separation approaches were developed for different countries where transaction types varied (share sale, asset sale, or de-merger) and legal & regulatory requirements necessitated immediate change. Helped define TSA’s and SLA’s in 30 countries covering 400+ applications and 2000+ service line items. Helped to plan the full logical and physical separation for all International sales and distribution operations.

Outcome Delivered

The costs of separation were minimised for both parties. Risks were effectively controlled, mitigated and managed. Enabled the IT Leadership to achieve legal and regulatory separation within a very short timescale. Ensured a consistent approach between countries. Achieved legal and regulatory separation within the very tight timescales set for the overall separation.