Conti to Acquire 89.66% Stake in its Turkish Tyre Distributor
Continental AG reports it has agreed to acquire 89.66 per cent of Turkey based tyre distributor Oltas Spa. The purchase value of this shareholding, previously held by Turkish Fortune Global 500 corporation Koç Holding and other Koç Group shareholders, has not been disclosed. Approval of the deal by Turkish anti-trust authorities is pending and further approvals from the European authorities are not required in the case of this majority holding.
Oltas exclusively distributes Continental, Uniroyal and Barum branded passenger car and commercial vehicle tyres in Turkey, and has built up a franchise dealer network of 200 outlets. According to Conti, Oltas achieved sales of 39 million in 2007.
“With this acquisition, we are significantly improving our market position for commercial vehicle and passenger car tyres in Turkey and thus in the growth region Eastern Europe overall,” said Dr. Alan Hippe, Executive Board member responsible for the Passenger Car Tire division. “Following the majority shareholding in the Slovakian Continental Matador Rubber and the acquisition of the Finnish specialist for spikes Tikka, this transaction also demonstrates that, in both the Passenger Car and Commercial Vehicle Tire division, we are constantly on the lookout for meaningful additions to our portfolio and want to continue growing,”
Conti considers Turkey to one of Europe’s growth markets during the next few years, as while only one in ten of its 75 million residents owns a car, incomes are increasing steadily and the economy has recently enjoyed a greater level of stability.