Cooper Tire’s acquisition of Chinese tyre maker to close by year’s end

Friday 5th August 2016 | 0 Comments

 

At the start of the year, Cooper Tire & Rubber confirmed its intention to acquire a majority interest in Chinese truck and bus radial manufacturer Qingdao Ge Rui Da Rubber Co., Ltd (GRT); the plan is to initially purchase a 51.86 per cent equity interest in the joint venture company from Qingdao Yiyuan Investment Co., Ltd., with Cooper Tire Holding Company obtaining a further 4.32 per cent; the registered capital in GRT will then be increased from RMB 350,000,000 to RMB 438,236,991 (£49.8 million), the result being that Cooper Tire & Rubber’s share will rise to 60 per cent share and Cooper Tire Holding Company’s to five per cent. Yiyuan will retain a 35 per cent share in the joint venture, which is being renamed Cooper (Qingdao) Tire Co. Ltd. The tyres produced at the plant will be exported to global markets.

When Cooper first announced the planned acquisition, it anticipated closure some time during the first half of 2016; the company has now revised the completion date and states the deal is “expected to close by the end of this year pending certain permits and approvals by the Chinese government.”

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Category: Company News, International News