It was recently announced, after much speculation from within the industry, that Apollo tyre – based in India – is set to purchase Cooper Tire.
The latest reports from Apollo are that the cost of the deal with be in the region of $2.5 billion.
Once this goes through, Apollo will become the 7th largest tyre manufacturer in the world.
It is understood that the deal has been passed by directors on the boards of both the companies and that stockholders within Cooper are set to obtain $35.00 per share.
Quoted on Tyrepress.com, Onkar S Kanwar, chairman, Apollo Tyres Ltd, said, “This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world.
“Cooper is one of the most respected names in the tire industry, with an extensive distribution network and manufacturing infrastructure, and a particularly robust presence in North America and China. The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth.
“Our combined portfolio of brands and products will be amongst the most comprehensive in the industry.”
Full details of the sale are scarce at the moment, but it expected that more will be revealed over the coming months.