SINGAPORE : Malaysia’s largest asset manager, Permodalan Nasional Bhd (PNB), is considering merging Sime Darby Motors and Perusahaan Otomobil Kedua (Perodua) to create an automotive giant worth over 10 billion ringgit ($2.15 billion), two sources said.

State-owned PNB is talking to advisers to explore options including first by merging the holding companies of the two units then creating the bigger automotive group that could help spearhead the development of the electric vehicle (EV) sector in Malaysia, the sources with knowledge of the matter said.

PNB, which manages over 300 billion ringgit of assets, is the biggest shareholder in Sime Darby Motors’ parent, Sime Darby, owning almost a 50 per cent stake.

PNB is also the largest shareholder owning 60.6 per cent of industrial group UMW Holdings, which in turn is the top shareholder of Perodua with a 38 per cent stake.

Separately, PNB also owns a direct 10 per cent stake in Perodua. Other shareholders in Perodua include Daihatsu, MBM Resources and Mitsui & Co, Perodua’s website showed.

The sources declined to be named as the matter is private.

PNB, Sime Darby, UMW and Perodua declined to comment.