India's Apollo Tyres to buy Cooper Tire for $2.5 billion

[DainBramaged]

India's Apollo Tyres Ltd. is buying Cooper Tire & Rubber Co. in an all-cash deal valued at $2.5 billion, or about a 40-percent premium over the 30-day average price of Cooper's stock.

The combination of the Nos. 16 and 11 tire makers worldwide will create an entity with roughly $6.6 billion in annual sales -- good for a No. 7 world ranking -- and manufacturing at a dozen plants in eight countries: China, England, India, Mexico, the Netherlands, Serbia, South Africa and the U.S.

In a joint statement today, the companies called the acquisition a "strategic combination" of two companies with "highly complementary brands, geographic presence, and technological expertise."

Cooper CEO Roy Armes, in the statement, called the deal a "compelling transaction that is in the best interest of Cooper's stockholders" that offers "attractive benefits to our customers and employees." Cooper will continue to recognize its labor unions and honor the terms of collective bargaining agreements presently in effect while generally maintaining compensation and benefit levels for non-union employees, the company said

Read more: http://www.autonews.com/article/20130612/OEM10/130619947#ixzz2W6U4hkqu


It will take about a year to shaft the Union and close down American production.

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Read more: http://www.autonews.com/article/20130612/OEM10/130619947#ixzz2W6Tq2Kxg