Chengshan to Buy Out Cooper Tire Venture in China

China's Chengshan Group Co. Ltd. will pay $285 million to buy out partner Cooper Tire & Rubber Co. and take control of their tiremaking venture in Shandong, the Financial Times reports.

The venture had been owned 65% by Cooper and 35% by Chengshan.

The sale resolves a dispute that derailed a $2.5 billion attempt by Cooper to sell itself to India's Apollo Tyres Ltd. last year. Workers at the Chengshan-Cooper factory protested the sale, seized the plant and evicted Cooper's senior managers.

Chengshan and Cooper agreed in February to end the venture. Under the plan, an independent arbiter would set a value for the venture of at least $435 million. Chengshan would then have the option to buy Cooper's 65% stake or sell its own share to Cooper.

The arbiter appraised the venture earlier this year at $438 million. Chengshan says it advised Cooper on Sept. 30 it would buy its partner's stake.

Analysts tell the FT that Chengshan faces a tough challenge going it alone, since it has little brand recognition and will own only one factory.