Companies from the US, Korea, and China are showing interest in the privatization of UzAuto Motors — SAMA
Investors from the US, South Korea, and China are showing interest in acquiring UzAuto Motors and UzAuto Powertrain, announced Sohibjon Murodov, director of the State Assets Management Agency (SAMA). According to him, the assets will be sold through open and competitive international tenders. Alvarez & Marsal has been involved in the process as a consultant.
Companies from the US, Korea, and China are showing interest in the privatization of UzAuto Motors — SAMA
It has been announced that investors from the US, South Korea, and China are showing interest in purchasing UzAuto Motors and UzAuto Powertrain. This was stated by the Director of the State Assets Management Agency, Sohibjon Murodov, at a press conference held on October 8, Gazeta correspondent reports.
According to him, the privatization process began two years ago. At the preparatory stage, the international consultant Alvarez & Marsal was involved on a competitive basis. This was due to the company's experience in major transactions in the global automotive industry and its qualified specialists.
The head of SAMA specifically noted that the expressed interest does not mean that preference will be given to a specific investor or that the asset has already been sold. He reminded that the company will be sold only through competitive and open international bidding.
"This could negatively affect our ability to carry out privatization under competitive conditions and send the wrong signal to other participants. Privatization is not aimed at a single company; it will be an open international sale," said Sohibjon Murodov.
Currently, based on the privatization strategy, a scenario for organizing the sales is being developed.
In the subsequent stages, an international consultant to organize the sales will be selected, assets will be valued based on international standards, financial and legal due diligence will be conducted, and official proposals for investors will be published in local and foreign media.
Applications will be accepted in stages: first, Expressions of Interest (EoI), then Non-Binding Offers (NBO), and finally, Binding Offers will be received. Direct negotiations will be conducted with the investor offering the most favorable terms.
"During the sale process, a number of requirements, such as licensing conditions and their terms, as well as alliance agreements, will be announced, and communication will be conducted based on these," the head of the agency added.
Murodov cited the Coca-Cola Uzbekistan transaction as an example of the expected economic efficiency of privatization. Due to the enterprise, which was sold for $252 million and assumed relevant investment obligations, production capacities in Tashkent have nearly doubled, the enterprise in Namangan has been modernized, production in Khorezm has been expanded, and a new plant has been launched in Samarkand.
He emphasized that such transactions not only increase the capacity of enterprises but also serve to create new jobs and expand the network of suppliers and service providers.
As a reminder, a presidential decree on the privatization of UzAuto Motors, UMS, the Tashkent Tractor Plant, and several thermal power plants was signed in April 2025.
This refers to the sale of a 99.7% stake in UzAuto Motors and a 100% stake in UzAuto Powertrain.
According to the "Avtostrada" publication, the agreement between Uzavtosanoat and General Motors was signed in October 2017 for a period of 10 years. Under the agreement, UzAuto Motors obtained the license to produce GM models, the right to use the Chevrolet brand, and access to the company's technologies. The term of this agreement expires in 2027.