Mexican Media Brands
India’s Apollo Tyres May Seek Control of Cooper Tire
Gurgaon, India-based Apollo Tyres Ltd. is buying a controlling stake in America's Cooper Tire & Rubber Co., according to India's Economic Times.
#economics
Share
Gurgaon, India-based Apollo Tyres Ltd. is buying a controlling stake in America's Cooper Tire & Rubber Co., according to India's 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 U.S 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
-
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 Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future