Although it’s probably too early for champagne corks to pop, progress has been made in the Kumho Tire shareholding negotiations. Yonhap News Agency writes that the tyre maker’s creditors have “tentatively agreed to accept original proposals” made by Kumho Asiana, adding that this may pave the way for creditors to complete the sale of the 42.01 per cent shareholding to Qingdao Doublestar Tire.
Former Fleetcor Technologies business NexTraq is now a wholly-owned subsidiary of Michelin North America following the completion of its all-cash acquisition.
Negotiations over the use of the Kumho brand name are drawing to a conclusion, with Park Sam-Koo and the board of Kumho Industrial Co. announcing their final offer following a meeting yesterday. This offer centres on the payment of 0.5 per cent of Kumho Tire’s sales in brand royalties for 12.5 years and a clause ensuring that Doublestar uses the Kumho name for the entire period.
Qingdao Doublestar Tire’s bid to acquire 42.01 per cent of South Korean tyre maker Kumho Tire is developing into a drama of the sort not witnessed since a stubborn Cooper Chengshan Tire helped derail Apollo Tyres’ purchase of Cooper Tire & Rubber. Business Korea writes today that 41 Kumho Tire executives, including chief executive officer Lee Han-seob, intend to resign should Kumho Tire’s creditors sell the share to Doublestar.
It’s more than two months since Qingdao Doublestar Tire was named the preferred bidder to acquire a 42.01 per cent share in Kumho Tire, yet a satisfactory agreement remains elusive. The most contentious point has been the use of the Kumho brand name, with rightsholder Kumho Industrial demanding 0.5 per cent of Kumho Tire’s revenues for 20 years for use of the name – significantly more than the 0.2 per cent for five years as previously agreed between Doublestar Tire and Kumho Tire’s creditors.
Another acquisition for Continental. Days after the German company reported taking a minority share in French autonomous driving company EasyMile SAS, it announced it has finalised its acquisition of Singapore based mobility intelligence provider Quantum Inventions. Continental hasn’t disclosed how much it paid for the firm.
With the signing of a contract, and possibly the clinking of glasses, Michelin sealed its acquisition of a 40 per cent stake in Robert Parker Wine Advocate and RobertParker.com, the world’s most widely read independent consumers’ guide to fine wine. The tyre maker views this equity investment as a measure that strengthens and broadens its “experience in the area of gourmet dining.”
Further consolidation has taken place within the tyre trade, and Germany’s Reiff Reifen und Autotechnik will soon be a sister company to Italian tyre wholesaler Fintyre. London-based platform European Tyres Distribution Ltd., parent company of Fintyre, has entered into a binding agreement with Germany’s Reiff Group to acquire its tyre and car technology business area.
Bekaert and ArcelorMittal have integrated Bekaert’s formerly wholly-owned steel cord subsidiary in Sumaré (Brazil) into the BMB (Belgo Mineira Bekaert Artefatos de Arame Ltda) partnership.
In line with the shareholding structure of the BMB joint venture, ArcelorMittal has become the majority shareholder (55.5%) of the steel cord entity in Sumaré and Bekaert retains the remaining shares (44.5%).
Acting in concert with Ivory Coast-based company SIFCA, Michelin has opened a simplified cash public tender offer through its 99.99 per cent-owned subsidiary Compagnie Financière Michelin SCmA (CFM) to acquire the 841,285 shares in natural rubber company Société Internationale de Plantations d’Hévéas (SIPH) not currently held by the two parties. Michelin states that it and SIFCA will pay 85 euros for each share in the West Africa-based rubber producer and marketer.
Accuride Corporation has entered into an agreement to buy Mefro Wheels GmbH. Headquartered in Solingen, Germany, Mefro Wheels is a privately-owned supplier of steel wheels to the European and Asian passenger car, light vehicle and commercial vehicle industries and maintains manufacturing operations in Germany, France, Turkey, Russia and China.
Liberty Hall Capital Partners, a private equity firm focused exclusively on investments in businesses serving the global aerospace and defence industry, has acquired Dunlop Aircraft Tyres Ltd. in a transaction valued at US$135 million. Dunlop Aircraft Tyres represents Liberty Hall’s first portfolio company focused on providing aftermarket products and services to the global aerospace and defence industry. A number of tyre makers had previously been linked with the sale of Dunlop Aircraft Tyres.
The fleet management package Michelin offers in North America is set to benefit from the company’s acquisition of NexTraq, a US provider of commercial fleet telematics. Yesterday the tyre maker reported its purchase of the Fleetcor Technologies subsidiary in an all-cash transaction.
Use of the Kumho brand name was certainly a factor motivating Qingdao Doublestar Tire’s bid for a share in the Korean tyre maker. Although selected as the winning bidder, uncertainty now hangs over the terms under which the Chinese manufacturer can use the Kumho name, and this may suffice for Doublestar to walk away from the deal. Kumho Tire’s creditors are attempting to broker a compromise.
Aluminium wheel company Superior Industries International, Inc. now holds a 92.3 per cent shareholding in Uniwheels AG after concluding its tender offer for an aggregate consideration of US$714.7 million. This offer was financed through approximately $670 million of newly funded debt, as well as $150 million of Preferred Equity.
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