By Arata Hashizume
Yomiuri Shimbun Staff Writer
Marubeni Corp. announced on Wednesday that it has agreed to acquire TiAuto Investments, one of the largest auto maintenance companies in Africa. Through the acquisition, Marubeni will enter the auto maintenance business on the continent.
The acquisition is believed to cost around 20 billion yen.
Marubeni aims to leverage the maintenance business expertise it has cultivated in Thailand and other countries to strengthen profitability in Africa, where demand for vehicles is expected to grow.
TiAuto handles a full range of auto maintenance services, including selling tires and other auto parts, replacing batteries and repairing wheels. It operates 161 stores across five countries, primarily in South Africa but also in Botswana and Namibia.
Marubeni made a full-scale entry into the auto maintenance business in 2006 with the acquisition of Thailand's largest player, B-Quik. Marubeni has also acquired controlling stakes in firms in Indonesia and Mexico, and now operates about 380 outlets worldwide. The company plans to acquire more than 50% of TiAuto's shares and turn the firm into a subsidiary.
Africa has a large used car market, and many of its roads lack proper paving, which is said to drive up demand for maintenance, including replacement of tires, brakes and batteries. In the medium to long term, the growth of the middle class alongside economic development is expected to lead to an expansion of the auto market, including for new cars.
There is limited competition from other companies entering the auto maintenance business, and Marubeni aims to quickly capture the growing market.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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June 10, 2026 23:32 ET (03:32 GMT)
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