Continental Sells mycar Tyre & Auto to Tuhu
Overview:
German automotive supplier Continental has reached an agreement to sell its Australian subsidiary, mycar Tyre & Auto, to Tuhu, a Chinese automotive service platform.
Deal Details:
- Enterprise Value: A$403 million (US$282.9 million)
- Regulatory Approvals: The deal is subject to necessary approvals.
- Employee Coverage: The sale includes mycar Tyre & Auto’s workforce of over 1,600 employees across 279 stores.
Services Offered:
mycar Tyre & Auto provides various automotive services, including:
- Scheduled maintenance
- Tyre fitting
- Brake and suspension work
- Battery replacement
- General mechanical repairs
Strategic Focus:
Continental emphasized that this sale aligns with its strategy to concentrate on its core business of developing and manufacturing tyres. The company originally acquired mycar Tyre & Auto in 2018 to expand its distribution in Australia.
Future Operations:
Following the sale, mycar Tyre & Auto will remain a distribution partner for Continental in Australia.
Dalibor Kalina, head of Continental’s Asia-Pacific tyre business, stated that the business has developed successfully and is well-positioned in the market, ensuring a seamless experience for customers.
Tuhu’s Position:
Tuhu operates a large automotive service network, managing 8,825 workshops and serving around 31 million users. Min Chen, Tuhu’s founder and CEO, noted Australia as a promising market and expressed anticipation for building on mycar Tyre & Auto’s existing foundation.
Recent Developments by Continental:
- ContiTech Sale: Continental has also agreed to sell its ContiTech industrial division for €4 billion (approximately US$4.56 billion).
- Business Divestitures: The company continues to streamline its operations, including the divestment of its former Automotive group sector and previous businesses under ContiTech.
For more detailed information, the original article can be accessed here.
