Cooper Tire & Rubber Company said it has dropped the merger proposal with Apollo Tyres, according to a report published on 4-Traders.

President Roy Armes, Cooper Chairman and Chief Executive Officer (CEO), said in a press release, "It is time to move our business forward. While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available. The right thing for Cooper now is to focus on continuing to build our business."

Meanwhile, Armes also said the American tire manufacturer will be focusing on Cooper Chengshan Tire (CCT) in Rongcheng, China. The firm is now working to resume normal operations and regular financial reporting at CCT, the report said.

The said press release concluded with Armes saying that Cooper believes Apollo has breached the deal. The Cooper CEO promised to pursue legal steps needed to protect the interests of the firm and its stockholders, 4-Traders reported.