12 June 2013 16:59 [Source: ICIS news]
HOUSTON (ICIS)--India-based Apollo Tyres has agreed to purchase US-based Cooper Tire for $2.5bn (€1.9bn), a merger that will result in the world’s seventh-largest tyre manufacturer, the companies announced on Wednesday.
The merger will be an all-cash transaction, the companies said in a press release. Cooper stockholders will receive $35/share in cash, a 40% premium to Cooper’s 30-day volume-weighted average price, the companies said.
Close of the transaction should occur in the second half of 2013, Apollo and Cooper said. After the close, Cooper will be a privately held company of Apollo and its common stock will no longer be traded on the New York Stock Exchange (NYSE), the companies said.
“This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world,” said Onkar Kanwar, chairman of Apollo. “Cooper is one of the most respected names in the tyre industry, with an extensive distribution network and manufacturing infrastructure, and a particularly robust presence in North America and ?xml:namespace>
“The combined company will be uniquely positioned to address large, established markets, such as the
Roy Armes, CEO of Cooper, said: “Together, our two organisations have almost no geographic overlap and significant opportunities for growth. … We look forward to working together to drive continued growth in a dynamic global tyre business where increased scale and expanded manufacturing footprint help to ensure long-term success.”
Founded in 1972, Apollo has headquarters in
Cooper was founded in 1914 in
($1 = €0.75)
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