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Old 17th June 2013, 16:45   #16
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Apollo is an ambitious company and buying cooper Tire Company looks like one of their strategic moves.
Moreover Cooper being the second largest US tire company after Goodyear, Apollo will have a good hold on US market.

After already being awarded ‘Tire manufacturer of the year award’ in Cologne Germany beginning this year, getting a major grip on European market is not very far.
With Mercedes Benz already running on Apollo for some time now, Volkswagen also is all set to use Apollo on all variants of Passat globally, its 4G technology.

Slipping through the majors like Continental, Bridgestone and Michelin definitely shows that the strategy for Apollo is going in a right direction.

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Old 18th June 2013, 22:06   #17
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Here we go with another deal. After apollo tyres another deal announced by M&M to buy 13.5% stake in Spain's CIE Automotive for USD 125.7 million. M&M is giving stakes in their automotive component companies to the seller instead of paying cash for this deal. M&M style of being balanced and slightly conservative in buyout deals without losing sight of their aspiration to go global.
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Old 21st June 2013, 15:27   #18
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Cooper is quite large and their major markets are US and China as opposed to Apollos India and Europe. So from a geographic perspective thats a good fit. I doubt they can cross see brands much, but then again they can share R&D to the extent of nearly removing any replication.
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Old 22nd August 2013, 14:23   #19
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

It seems China is trying to scupper the deal.


http://www.ft.com/cms/s/0/eff462fe-0...#axzz2cgbBSQGO

"Chinese workers have stepped up their campaign to scupper India’s largest acquisition of a US company, warning of continuing disruption at a joint venture that is a central element of the $2.5bn cross-border deal.
The Chengshan Group operates a large factory in Shandong province with Ohio-based Cooper Tire, which accepted a buyout offer from India’s Apollo Tyres in June.
Chinese workers at the joint venture went on strike shortly after the deal was announced, and late last month Chengshan asked a local court to dissolve the venture with Cooper.
It is the first time Chinese industrial action has targeted a large offshore acquisition involving two foreign companies, exposing a new risk for multinationals operating in the country.
Chengshan managers and the joint venture’s workers complain that they were not adequately consulted over the Apollo offer. They also argue that the deal will burden their prospective Indian owner with too much debt and result in a clash of corporate cultures.
The union representing the joint venture’s 5,000 workers said they would “not welcome” senior Cooper managers assigned to the factory. The workers agreed to resume their shifts at the weekend, but insisted that they would only produce Chengshan tyres while boycotting any work on Cooper Tire branded products.
“People are angry that Cooper Tire has refused to respect the union and employees’ right to information, to make suggestions and to participate in democratic management of the factory,” the workers said in a statement. “As long as [Cooper] does not respond to our legitimate concerns in a reasonable and satisfactory manner, the strike will continue.”
Cooper said it “continues to work toward getting the plant operating fully again as soon as possible, including the production of all tyre types and brands”. Cooper and Apollo both insist that the strike will not derail their deal, which they expect to complete by the end of the year.
Cooper is the majority partner in its joint venture with Chengshan, controlling a 65 per cent stake.
“The culture gap between Chinese and US companies is so large it took us years to adapt [to Cooper],” Liu Shuhong, director of Chengshan’s legal department, said. “No one here is willing to repeat that painful experience again with an Indian company.”
“Since the beginning of this process, Apollo hasn’t listened to our concerns, met with us or shared any information,” Ms Liu added.
Apollo said the company “looks forward to engaging directly with all of Cooper’s employees at the appropriate time”.
According to Ms Liu, the head of Cooper’s international division met workers in late June but did not satisfy their demands.
“I believe that this strike has government consent,” said Li Qiang, executive director of China Labor Watch, a New York-based worker rights group. “Other joint ventures in China can learn from this strike.”
Additional reporting by Wan Li"

Last edited by manolin : 22nd August 2013 at 14:24.
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Old 1st September 2013, 20:57   #20
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Chinese 'lock out' American bosses at the chinese facility-
http://www.ft.com/cms/s/0/42524776-1...#axzz2deagyGAv

With the chinese partner attempting to exit the JV itself, the deal itself is in trouble.
Quote:
Managers of the Chengshan Group joint venture plant have asked a local Chinese court to dissolve Cooper’s partnership in the company, The Financial Times reported.

If the court dissolves the partnership, it could kill the Apollo deal, Stephens said.
Link - http://bizbuzz.djournal.com/2013/08/...apollo-merger/

On the otherhand, Cooper shareholders are set to vote on Sept 30th
http://www.toledoblade.com/Automotiv...2-4B-deal.html
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Old 1st October 2013, 11:51   #21
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Shareholders of Cooper Tire approve Apollo takeover. Share prices of Cooper Tire goes up 3.5%

http://www.indianexpress.com/news/ap...-sale/1176788/

Last edited by 9thsphinx : 1st October 2013 at 11:52.
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Old 16th October 2013, 13:53   #22
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

http://capitalmind.in/2013/10/apollo...s-fast-enough/

"In an SEC Filing, Cooper Tire has sued Apollo for not putting “reasonable best efforts” to complete the $2.5 billion deal. The problem? The first sign of trouble was a strike at Cooper’s Chinese plant, where it owns 65%, the remaining 35% is with Chengshan, who has a tyre brand in China."

this is basically going downhill very fast!
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Old 16th October 2013, 14:13   #23
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Default Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Its amusing to see Chinese workers wanting them to be heard in decisions and democracy in their tyre plant. Seems like they have a problem with an Indian company having a majority stake.
Looks like its going to prove costly to Apollo any way.

Last edited by srishiva : 16th October 2013 at 14:15.
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Old 6th December 2013, 19:00   #24
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Smile Re: Apollo Tyres to buy Cooper Tire, making it the 7th Largest Tyre maker in the worl

Apollo tyres launches the premium European brand Vredestein in the Indian market to target the high end luxury cars and SUV's. The tyres will be available in 15 to 20in sizes (Source DNA newspaper).
Considering that Apollo managed to turnaround the loss making Holland subsidiary Vredestein Banden BV. Apollo is optimistically targeting a monthly sales of 5000 units since launch.

http://economictimes.indiatimes.com/...w/26909844.cms

http://www.business-standard.com/art...0500998_1.html
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Old 21st December 2013, 07:18   #25
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Default Re: Apollo Tyres buys Cooper Tire & Co. for about $2.5 billion (14.5k Crores)

Quote:
Originally Posted by smartcat View Post
These guys see a fence with a board stuck on it "Electrified fence. Do not touch". But they still pee on the fence to see what happens.
Looks like Apollo might walk away from the fence without much organ damage. Cooper Tire loses court bid to rescue Apollo Tyres merger

Cooper Tire & Rubber Co's efforts to force Apollo Tyres to complete its proposed acquisition of the US company for $2.3 billion received another legal setback, paving the way for the Indian company to walk away from the deal.
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Old 21st December 2013, 23:24   #26
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Default Re: Apollo Tyres buys Cooper Tire & Co. for about $2.5 billion (14.5k Crores)

Quote:
Originally Posted by deetjohn View Post
Looks like Apollo might walk away from the fence without much organ damage.
Merger or acquisition plans do fall apart before they are consummated. But this is one of the few case I've seen where the seller is desperate for the deal to go through.

From this, one could infer that Cooper shareholders were getting a better deal than Apollo Tyres shareholders.
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Old 30th December 2013, 17:40   #27
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Default Re: Apollo Tyres to buy Cooper Tire. UPDATE: Deal Terminated

Looks like the deal did not go through !

http://profit.ndtv.com/news/corporat...o-tyres-376229
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Old 21st September 2016, 07:59   #28
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Default Re: Apollo Tyres to buy Cooper Tire. UPDATE: Deal Terminated

Apollo seems to be in line for a second push to enter the US:

Quote:
Neeraj Kanwar has put together a small research and development (R&D) team focused on the US and hired a business head for North America in his second attempt in three years to enter the world’s biggest tyre market.

The vice-chairman and managing director of Apollo Tyres Ltd has hired Steven Smidlein from Goodyear Tire and Rubber Co. as senior vice-president for north America. Smidlein will be responsible for building the brand and sales in north America for both Apollo and Vredestein, the Dutch tyre-maker Apollo acquired in 2009.
http://www.livemint.com/Companies/2r...3-years-a.html
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