Mexican Media Brands
Indian Company May Seek Control of Cooper Tire
India's Apollo Tyres Ltd. is buying a controlling stake in Cooper Tire & Rubber Co., according to the New Delhi-based Economic Times.
#economics
Share
India's Apollo Tyres Ltd. is buying a controlling stake in Cooper Tire & Rubber Co., according to the New Delhi-based Economic Times.
The newspaper cites unidentified sources who say the acquisition may cost $600 million-$800 million. Reuters puts the total at the low end of that range.
Shares in the Findlay, Ohio-based company jumped 6% to $19.78 in after-hours trading on Thursday, thus valuing Cooper Tires' equity at $1.2 billion. Apollo's market capitalization is about $840 million.
News reports say the Indian company has hired Standard Chartered Bank to help it to raise $600 million to finance the acquisition by selling stock and debt.
Analysts say Apollo would benefit from access to the American tire market and Cooper's specialty: the replacement tire business. India now accounts for about two-thirds of Apollo's revenue. The company aims to become one of the world's 10 largest tiremakers by 2016.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.