Why is Eagers Auto stock surging today?

Eagers Automotive stock surged 6.8% to A$19.86 on Monday after the company said it entered a binding agreement to acquire the remaining 20% ownership interest in a joint venture with China’s BYD.

Eagers said it will acquire the full 100% ownership in its BYD Retail Joint Venture, EV Dealer Group Pty Ltd, through a combination of cash and Eagers Automotive ordinary shares. The transaction is expected to be completed by 31 October 2026 and is forecast to be 5.0% to 5.5% earnings accretive for shareholders, based on the joint venture’s pro-forma underlying operating profit before tax for the twelve months ended 30 June 2026.

The deal consolidates full ownership of a strategically important vehicle for Eagers’ EV growth ambitions, bringing the BYD retail operation entirely under the company’s umbrella and eliminating the minority interest. This comes on the back of a record first-half FY26 result reported in late August, which featured strong revenue and earnings growth, and the company has also been conducting an ongoing on-market share buyback, signalling management’s confidence in the stock’s underlying value.

Eagers rose past a flat performance in the broader ASX 200 index.