In one of the biggest acquisitions in the industry, the country’s largest tyre maker, Apollo Tyres, is all set to fully acquire Dutch company Vredestein Banden. The deal is expected to be closed in a fortnight for a consideration of around $300 million (INR 1,500 crore).
“We are looking at closing the deal by the middle of this month,” said Neeraj Kanwar, vice chairman and joint MD, Apollo Tyres. “Vredestein is a premium Tier 1 tyre manufacturer with a portfolio of high-end, high speed-rated passenger car tyres going up to a speed of 300 km per hour. We have a high synergy, but I will be able to give you details on this only once we achieve closure.”
The acquisition will help Apollo drive into the premium markets of Europe and US — which the company has been attempting for some time. Apollo recently put off plans to set up a greenfield plant in Hungary with an investment of $266 million citing delay in getting approvals.
“Vredestein was bought over by Amtel in 2005 for $260 million so this acquisition would at least amount to $300 million,” said an industry analyst on conditions of anonymity.
“The deal is a win-win situation for Apollo as it not only gets access to high-end technology which it can also bring into India, but also a firm marketing and sales foothold in Europe.” (Hindustan Times)