Gaining the incredible heights, Apollo Tyres will soon acquire the US based Cooper Tire and Rubber Company for Rs. 14,500 crore ($2.5 billion). This acquisition will lend Apollo Tyres the tag of world’s seventh largest tyre maker. That’s not all; the Indian organization will also gain a good hold over US and Chinese market via this buyout.
On an accumulation, after the takeover, both of these companies will be handling various brands of tyre namely Apollo, Cooper, Avon, Vredstein, Mastercraft, Chengshin, Roadmaster and Starfire, which are sold in Europe, North America and China. Exclusive to it, the US based tyre maker also owns a share in Kuhmo Tires of Korea that too is expected to fall in this joint kitty sooner or later.
Commenting on same, Roy Armes , CEO of Cooper Rubber and Tire Company said, “We have watched Apollo’s successful transformation into a major global tire group and have a great deal of respect for the company and its leadership.”
As per to the deal, shareholder will receive $35 per share due to the delisting of stocks in New York Stock Exchange (NYSE). And both the firms will finally conclude acquisition by second half of 2013.