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Apollo Tyres Acquires Cooper of US For Re. 14500 Crore

PUBLISHED BY: SURENDER KUMAR
JUNE 12, 2013

   
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Apollo Tyres it has acquired US-based Cooper Tire & Rubber Company, in an all-cash transaction worth Re. 14,500 crore. The deal has been unanimously approved by both companies in which Cooper stockholders will receive $35 per share in cash. The transaction represents a 40 % premium to Cooper’s 30-day average stock price.

 

The combined entity is expected to deliver value creation benefits of around Rs 465-700 crore year. The benefits are expected to be fully achieved after 3 years and will be derived from operating scale, sourcing benefits, technology, product optimisation and manufacturing improvements.

 

 

The combined company will be in a uniquely position to serve large markets such as the USA and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for growth. Cooper has an extensive distribution and manufacturing infrastructure and has a strong presence in North America and China.




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