Apollo Tyres has signed an agreement to acquire Cooper Tire and Rubber company under a wholly-owned subsidiary of Apollo via an all-cash transaction valued at approximately Rs. 14,500 crore (US$2.5bn).
Onkar S Kanwar, chairman, Apollo, said, “This transformational transaction provides an unprecedented opportunity to serve customers in both developed and fast-growing emerging markets around the world.
The combined company will be uniquely positioned to address large, established markets, such as the US and the European Union and the fast-growing markets of India, China, Africa, and Latin America.
The close of the transaction, assuming regulatory approvals and other customary closing conditions are met as well as approval by Cooper’s stockholders, is expected to take place within the second half of 2013. Following the close, Cooper will become a privately held company and its common stock will no longer be traded on the NYSE. In a press release, it has been stated that Cooper will continue to be led by members of its current management team and operate out of its facilities located around the world.