Apollo Tyres Buys Out Cooper Tire and Rubber
Apollo Tyres of India has entered into an agreement with Cooper Tire and Rubber Co, an American firm for the purchase by the Indian firm of the shares of the US based company. The said deal would create the seventh largest tire manufacturer to expand its opportunities beyond the declining Indian car market.
Apollo generates two thirds of its overall revenue from the Indian car market. It will pay US$35 per share, which provides a 43% premium for Cooper's share value from the market value at close of the bourse last Tuesday.
The acquisition would also provide Apollo a direct line to the US market for replacement or retread market for cars and other vehicles. Cooper is the 11th largest tire company with an annual revenue of U$4.2 billion.
This deal is amongst the latest acquisitions made by Indian firms in recent memory. Amongst the biggest deals have been the US$2.3 billion purchase of Jaguar Land Rover by Tata Motors and the US$9 billion takeover of Zain of Kuwait by Bharti Airtel Ltd.