| || ||Thread Tools||Search this Thread|
|14th November 2016, 18:26||#1|
Senior - BHPian
Join Date: Jun 2012
Thanked: 7,513 Times
Apollo Tyres might acquire Kumho Tire in $900 million deal
Apollo Tyres is reportedly a contender to acquire South Korea's second largest tyre manufacturer - Kumho Tyres, in a deal that is expected to amount $900 million. Other companies in the acquisition race include Chinese tyre giants Shandong Linglong Tyre and ChinaChem, which currently owns Pirelli. France's Michelin too is being said to have its eye on the Korean firm. Continental AG, Goodyear Tire & Rubber and Yokohama Rubber had also shown interest in the acquisition, but eventually backed out.
The said deal revolves around a controlling stake of 42% in Kumho Tire. Financial firm Credit Suisse is currently running an auction of the aforementioned stake, with the sales process now said to be in the final stages. The decision to sell 42% shares was announced last week by the company's major creditors, including Woori Bank, Korea Development Bank and KB Kookmn Bank.
If Apollo Tyres does manage to get its hands on Kumho Tire, the resulting company will be the world's seventh largest tire manufacturer.
Source: ET Auto
Link to Team-BHP News
|14th November 2016, 23:25||#2|
Distinguished - BHPian
Join Date: Jun 2007
Thanked: 12,355 Times
Re: Apollo Tyres might acquire Kumho Tire in $900 million deal
- Slightly more palatable acquisition target (in terms of size) when compared to their earlier $2.5 billion Cooper Tyre bid.
- Kumho Tires had a net loss of $24 million in CY2015 (but $125 million profit in CY2014)
- If the acquisition goes through, I expect the Apollo Tyres stock to experience a mini-crash.
- After the acquisition, Kumho Tire will only be an associate company (42% stake) and not a subsidiary. That's a negative.
|Thread Tools||Search this Thread|
|Thread||Thread Starter||Forum||Replies||Last Post|
|Hankook/Kumho/Maxxis/Nankang...How good/bad are these??||nitrous||Tyre & Alloy wheel Section||84||28th August 2017 13:38|
|Apollo Tyres to buy Cooper Tire. UPDATE: Deal Terminated||arvindmanju||Tyre & Alloy wheel Section||27||21st September 2016 07:59|
|Tire swap on scorpio - Retain OE apollo or change||rm_arjuna||Tyre & Alloy wheel Section||10||31st December 2010 22:58|
|Kumho Tires - ECSTA 15 Series||aah78||Tyre & Alloy wheel Section||0||6th November 2008 02:17|
|Got 15"alloys and tyres,good deal or bad deal?||.anshuman||Tyre & Alloy wheel Section||10||4th April 2006 12:58|