{"id":2568,"date":"2013-06-13T06:15:00","date_gmt":"2013-06-13T06:15:00","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=2568"},"modified":"2013-06-13T06:15:00","modified_gmt":"2013-06-13T06:15:00","slug":"apollo-tyres-to-acquire-us-based-company-for-rs-14500-crore","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/apollo-tyres-to-acquire-us-based-company-for-rs-14500-crore\/","title":{"rendered":"Apollo Tyres to acquire US based company for Rs 14,500 crore"},"content":{"rendered":"

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In what’s being cheered as the largest M&A deal in India’s automotive history, Apollo Tyres has announced it will acquire US-based Cooper Tire & Rubber Company in an all-cash transaction valued at $2.5 billion or around Rs 14,500 crore.<\/p>\n

The Gurgaon-based tyre major said on Wednesday that it would offer Cooper stockholders $35 per share in cash \u2014 a 40% premium \u2014 to buy back all the shares and delist the Ohio-headquartered company from the New York Stock Exchange.<\/p>\n

The mega deal, which comes at a time when markets are depressed globally, will catapult Apollo from its 16th position in the global pecking order to being the 7th largest tyre company. It will have a footprint in both developing and developed markets, including the US and China, and churn out daily volumes of 3,500 tonne, double what it now clocks.<\/p>\n

It will finance the deal through cash flows from its Indian operations and by leveraging that of Cooper Tire and Apollo’s European operations. “Around $450 million will be serviced out of India cash flows,” said Neeraj Kanwar, VC & MD, Apollo Tyres.<\/p>\n