Marubeni Corporation (“Marubeni”) is pleased to announce the acquisition of 49% shares of the leading distributor of replacement tires in Mexico, Radial Llantas S.A. de C.V. (“Radial Llantas”), and has met an agreement regarding the participation of Marubeni in Radial Llantas’ management.

 

Radial Llantas operates a tire distribution company in Mexico, and have expanded their dealership network by handling multiple brands to meet customers’ needs. As of the end of August 2016, they have opened retail shops and wholesale bases in 66 areas.

 

Marubeni has been promoting its domestic-demand oriented businesses worldwide as a pillar of its overseas strategy. Marubeni has actively participated in tire-related businesses that directly lead to the consumers, having acquired the Thailand-based dealer B-Quik in 2006, and expanding its dealership around ASEAN.

 

With its participation in Radial Llantas, Marubeni will utilize this opportunity to develop a similar business model. Mexico has been experiencing motorization as a result of its steady economic growth, and in 2014 automobile ownership had reached 36 million, making it 10th in the world. The country has potential in the expansion of the automotive aftermarket such as the replacement of consumables including tires, and maintenance services.

 

Utilizing its know-how acquired in the ASEAN, along with the network Radial Llantas has established, Marubeni plans to provide products and services that meet the consumers’ needs, while also expanding its tire sales business.