Apollo buying Cooper Tire, report sources

Indian financial daily The Economic Times states that Apollo Tyres is “in the process” of acquiring Cooper Tire & Rubber Company. The publication’s 11 October news is based on “sources with direct knowledge” of the deal; these sources indicated to The Economic Times that the acquisition could be valued at between US$600 and $800 million and give Apollo a majority share. When Tyres & Accessories contacted Apollo Tyres directly in relation to the news, the tyre maker’s Corporate Brands & Relations manager Rohit Sharan said Apollo “would not comment on market speculation.”

Should the unnamed sources’ information prove accurate, the acquisition will give Apollo Tyres access to Cooper’s sizable passenger car and light commercial vehicle replacement business. Apollo is said to be raising $150 million via qualified institutional placement, an amount that should enable the company to raise additional debt to fund the acquisition. The Economic Times says its sources suggest Apollo Tyres could be raising close to $600 million of debt, for which the advisor to the deal, Standard Chartered Bank, has already initiated the process.