Conti selling Australian retail chain to Chinese group

Sydney, Australia – Continental is selling its mycar tire & automotive retail and service business in Australia to China’s Tuhu in a deal valued at AUS$403 million (€250 million).

The transaction covers around 280 stores and more than 1,600 employees and remains subject to regulatory approvals, Continental announced 24 Sept.

Continental said the disposal represented a further step in its strategy to focus on the development and manufacture of tires.

The German group will retain its own sales organisation in Australia, while mycar will continue to distribute Continental tires following completion of the transaction.

Continental acquired mycar in 2018 as part of efforts to expand its Australian distribution network and strengthen its presence in the tire market.

The business provides tires, scheduled maintenance, brakes, suspension, batteries and general mechanical repairs.

Tuhu, a Chinese automotive services group, said Australia was a “highly attractive and promising market for automotive services” adding that it intended to build on mycar’s existing position.

Tuhu operated 8,825 workshops in China as of 30 June and served 31 million transacting users during the preceding 12 months, according to Continental.