Japanese giant wants to buy prominent South African company worth R2.6 billion

Japan’s Marubeni Corporation is in talks to acquire Carlyle-backed TiAuto Investments, according to people with knowledge of the matter.

The deal for the South African retailer of automotive tires and parts may be valued at about R2.6 billion said the people who asked not to be identified as details of the transaction are private.

Old Mutual’s private equity business is also an investor in the operator of Tiger Wheel & Tyre. 

Old Mutual Private Equity and other shareholders are at a “very advanced stage of engagement with Marubeni to sell TiAuto,” said Old Mutual Private Equity co-head Jacci Myburgh. Marubeni and Carlyle declined to comment.

A deal will give the Japanese trading and investment house, which is backed by Warren Buffett’s Berkshire Hathaway, a foothold in Africa’s largest economy where new vehicles sales last month jumped to 54,700 units — the highest in a decade. Companies from Tata to BYD are starting to sell in the nation as demand for cost-efficient cars increases. 

The automobile industry contributes to more than a fifth of the country’s manufacturing output, with companies including Toyota, BMW, and Ford also producing vehicles, according to South Africa’s automotive industry body. 

Private equity exit volumes in southern Africa increased to a six-year high in 2024, with momentum continuing in 2025 as market conditions improve, according to the South African Venture Capital and Private Equity Association. 

The private equity business of Old Mutual recently sold another South African business Holdsport to the UK-based Fraser group. 

TiAuto was founded in 1967 and has grown to more than 100 stores across the country.