Cooper Tire & Rubber Co.
) announced the termination of its merger agreement with Apollo
Tyres Ltd. The company will now be focusing on improving its
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The acquisition of Cooper Tire by a wholly-owned subsidiary of
Apollo Tyres was announced in Jun 2013. The purchase
consideration for the all-cash transaction amounted to $2.5
billion. Apollo Tyres was to pay $35 per share to the
shareholders of Cooper Tire, which included a 40% premium on the
30-day volume-weighted average price of Cooper Tire at the time
of the deal's announcement.
With the dismissal of the merger proposal Cooper Tire will be
pursuing better operating results. The company is optimally
positioned due to its good quality brands, loyal customer base,
and worldwide network of manufacturing facilities, efficient
workforce and strong technical capabilities.
Since the signing of the merger deal Cooper Tire was facing
challenges from its Chinese joint venture (JV) partner Chengshan
Group Co. and the Chinese labor union. The Chinese workers felt
that the merger with Apollo Tyres would jeopardize their
employment and were seeking dissolution of the JV. They stopped
the production of Cooper Tire-branded tires and were not
providing any financial information to the company.
As the agreement has been terminated, Cooper Tire will be working
towards restoring normal operations at its Chinese JV. This will
help the company resume regular financial reporting.
Cooper Tire currently carries a Zacks Rank #3 (Hold). Some
prominent players in the tire and rubber industry include
The Goodyear Tire & Rubber Co.