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Japan’s Marubeni has inched closer to finalising the transaction that will see it take ownership of TiAuto Investments, owner of South Africa’s leading vehicle maintenance group Tiger Wheel & Tyre, in a deal said to be worth about R2.6bn.Old Mutual’s private equity arm is a key investor in TiAuto, which has been in existence for nearly six decades.TiAuto Investments CEO Alex Taplin said the deal is subject to customary regulatory approvals and closing conditions.He said the successful conclusion of the transaction will provide TiAuto with access to global expertise, additional resources and international best practices while maintaining the local leadership.“This is an exciting new chapter for TiAuto. We are proud of the business we have built over almost six decades and of the trusted brands, talented people, and loyal customers that have contributed to our success. Marubeni’s investment is a strong endorsement of our strategy, our market position, and the opportunities that lie ahead,” he said.“By combining TiAuto’s deep understanding of African markets with Marubeni’s global capabilities, we will be well positioned to strengthen our offering, enhance customer experiences, and continue investing in the future of our business.”Bloomberg first reported on the mooted deal in November, valuing it at R2.6bn. The deal comes while South Africa’s new vehicle sales market is on a hot streak, with vehicles sold in May, the highest since May 2013.The second-hand car market is also resilient, with the country’s largest second-hand showroom selling more than 12,000 cars a month.TiAuto’s footprint stretches across 161 stores in South Africa, Botswana, Namibia, Zimbabwe and Zambia, serving motorists through its retail, wholesale and vehicle service network.The mooted transaction is Marubeni’s first investment in the African vehicle maintenance market.Founded in the 1850s, Marubeni has set a target of reaching a market value of about ¥10-trillion by the fiscal year ending March 31 2031. Warren Buffett’s investment vehicle Berkshire Hathaway has shares in Marubeni. The company has offices in Johannesburg, Nairobi, Casablanca, Algiers, Addis Ababa, Accra, Abidjan, Maputo, Cairo and Lagos. The group has a global presence across a broad spectrum of vehicle businesses, covering the entire vehicle lifecycle. This includes vehicle sales operations such as trade, wholesale and retail of new and used cars, including light commercial vehicles and heavy-duty trucks, as well as after-sales services such as parts sales and extended warranty offerings.
