Apollo to buy Cooper for US$2.5 billion

Apollo Tyres has finally confirmed speculation that the India-based manufacturer is to buy US firm Cooper Tire in a friendly takeover. According to the company the US$2.5 billion deal makes the firm the seventh largest tyre manufacturer in the world with combined revenues of US$6.6 billion. It also gives the manufacturer access to the North and South American markets currently uncovered by its global presence. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35.00 per share in cash. The transaction represents a 40 per cent premium to Cooper’s 30-day volume-weighted average price, according to an announcement detailing the news. We will add further details to this developing story as we receive them. Look out for complete coverage in the July issue of Tyre & Accessories magazine and online at Tyrepress.com.

Onkar S Kanwar, chairman, Apollo Tyres Ltd, stated, “This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world.  Cooper is one of the most respected names in the tyre industry, with an extensive distribution network and manufacturing infrastructure, and a particularly robust presence in North America and China.  The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth. Our combined portfolio of brands and products will be amongst the most comprehensive in the industry.” 

• The Cooper/Apollo gossip was right
• Comment: When it comes to takeover talk, the question is – who’s in play?