Cooper Tire and Rubber Co shareholders on Monday approved the US company’s $2.5 billion sale to India’s Apollo Tyres Ltd, in a transactionthat would create the world’s seventh-largest tyre maker.
The approval brought Apollo one step closer to completing the takeover, although hurdles remain due to opposition from workers at Cooper’s joint venture in China and US labour issues that could delay the deal.
The deal would be the second-largest US acquisition by an Indian company and one of the top 10 outbound takeovers from the country. About 96% of the votes at a Cooper shareholder meeting on Monday were in favour of the merger. About 78% of Cooper’s outstanding common shares were voted.