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