Sumitomo set to buy US tire retailer TBC for $1.1 billion

The acquisition marks a major expansion in Sumitomo's existing tire business. With more than a 1,100 stores and annual sales of about $2 billion, TBC is the largest independent tire retailer in the US. Every Japanese automaker places high importance on the US, which has the largest auto market in the world. The number of registered cars and light trucks in the US amounts to 225 million, 3.2 times as large as in Japan. Asian companies have recently increased acquisitions in Europe and the US, taking advantage of faster economic growth to tap new markets and obtain raw materials. Sumitomo Corporation has been engaged in the tire wholesale business through its wholly owned subsidiary Sumitomo Corporation of America for the past 35 years, although this acquisition is the largest investment deal it has ever made. The conglomerate plans to speed up tire sales business expansion through new outlets and the acquisition of businesses by leveraging its financial capability on the basis of TBC's existing sales infrastructure. The transaction is expected to close by the end of the year.