Michelin sells its 40% Double Coin (Anhui) Warrior Tire shareholding
Michelin has announced the sale of its 40 per cent equity in Double Coin (Anhui) Warrior Tire Co. Ltd. Specifically, as the tyre maker reported today, Huayi Group (Hong Kong) Co., Ltd. will purchase 30 per cent of the equity in the business held by Compagnie Financière Michelin SCmA, and Double Coin Tire Group Co., Ltd. will purchase the remaining ten per cent of the equity, currently held by Michelin (China) Investment Co. Ltd.
With these transactions, Michelin will divest its entire interest in the joint venture it began with Huayi Group and Double Coin Group in 2011 to establish Double Coin (Anhui) Warrior Tire Co. Ltd. The French tyre maker comments that during the cooperation, it supported the development of the Wuhu, Anhui Province-based firm as well as the quality management and the commercial performance of the joint venture to help the Warrior Brand to improve competitiveness in the market.
In a statement, Michelin explains that “in order to better focus on all parties’ core strengths, and to continue to strengthen their respective brands and to better focus on their respective strategy, all the parties have decided to make this equity transfer.” It adds that “all parties agree that the transaction is in their best interests and is beneficial to the sustainable growth of Michelin, Double Coin and Warrior.
“Since its entry into China 28 years ago, Michelin has attached great importance to this market and continued to make investments. Looking ahead, Michelin remains optimistic about China’s long-term growth, and is committed to the sustainable development of transportation in China,” concludes the statement issued by Michelin.