US-based firm Cooper Tire & Rubber Company announced via press release that it has called off its merger plans with India-based manufacturer Apollo Tyres and will focus on building its business instead.
According to Judge Sam Glasscock, it found Cooper's allegations to be without merit as against the actions of Apollo in its buyout negotiations.
Apollo Tyres and Cooper Tire & Rubber Co had been on a disagreement over a proposed decrease in price offered by Apollo to take over the US firm, reported Reuters.
A suit had been filed in the Delaware Chancery Court to compel Apollo to complete its acquisition of Cooper Tire.
Cooper Tire & Rubber Co filed a complaint in the Delaware Chancery Court to compel Apollo Tyres in closing its acquisition transaction soon, said a Reuters report.
The Reserve Bank of India would scrutinize pending foreign deals after the steep fall in rupee's value.
India-based Apollo Tyres Ltd shares were down by 18% after the announced US$2.4 million deal to acquire Cooper Tire & Rubber Co. due to worries of the company's debt.
Apollo Tyres purchases the shares of Cooper Tire and Rubber to create the seventh largest tire company in the world.