Univergomma recently completed the acquisition of 100 per cent of Overgom’s shares. Overgom, founded in 1977 by Arenzo Girardi as a regional wholesaler, has grown over the years to become a leading tyre distributor in Italy and abroad.
No I am not talking about the unqualifiable rumours that Doublestar made an offer of up to 250 million euros for Zenises. Rather, that in the first week of September we learnt that Doublestar’s proposed acquisition of Kumho was collapsing before the firm’s eyes after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. And it is also worth considering what all this means for the wider tyre manufacturing sector.
Apollo Tyres has denied reports published in India’s Economic Times suggesting that it is about to enter the race to acquire Kumho Tire. An Apollo spokesperson told Tyres & Accessories: “Apollo Tyres strongly denies the story headlined ‘Apollo Back in Kumho Race as Geopolitics Sours China Deal’ that appeared in the print edition of The Economic Times on 2 October, 2017.
Doublestar’s proposed acquisition of Kumho is reportedly close to collapse after the Qingdao-Chinese tyre manufacturer asked for a double-digit discount. According to reports in the Nikkei, Kumho’s major shareholders are planning to write to Doublestar asking the firm to agree to the end of bid talks between the two parties.
Speaking off the record, Chinese executives within Qingdao Doublestar have confirmed the company’s intentions to purchase well-known South Korean tyre manufacturer Kumho Tyre and that it is “now only Doublestar left to buy Kumho”. However, at roughly the same time, Korean newspapers have been reporting that Doublestar probably won’t have the right to use the Kumho brand name post-acquisition. With all this in mind, Tyres & Accessories summaries the story so far.
According to the company’s executive chairman Ian Edmondson, the goal is to find a suitable partner to help the company continue to move forward at its current rate of positive growth: “Our shareholders are now seeking to find a new investor who is in a position to help the business maintain the outstanding growth record that it has delivered in recent years.”
Knorr-Bremse AG has made a takeover offer for all shares in Haldex. Knorr-Bremse is offering 110.00 Swedish krone per Haldex share, 10.0 per cent higher than ZF Friedrichshafen AG’s offer of 100.00 krone per Haldex share.
Continental Tyre Group has bought Bandvulc (B.V. Environmental Ltd.), one of only two substantially sized independent retreaders in the UK. Not only does the deal change the face of UK tyre retreading, it also has a significant impact on commercial vehicle tyre market shares owing to the fact that Continental can now count Bandvulc’s strong fleet management, service provider and independent truck tyre retreader amongst its own. The takeover will establish Bandvulc as a wholly owned subsidiary of Continental UK Group Holdings Limited. T&A understands Bandvulc’s existing management team are to continue to lead the business.
On 9 June Alcar Deutschland GmbH took over 100 per cent of DBV Würzburg GmbH’s tyres, rims and lubricants business units in a bid to expand its distribution network. DBV’s filling stations business unit will remain with Andreas Bathon, the company’s former owner. As well as expansion in general, as a result of the takeover, Alcar Deutschland has set a course for the strategically important fitted units business segment and hopes to increase online sales, while also expanding the Alcar Group’s own product range.
Should the relevant authorities grant their blessing, at the start of July German agricultural tyre wholesaler Bohnenkamp AG will take over several business areas belonging to Starco, while the Danish company will assume responsibility for certain activities currently within the Bohnenkamp portfolio.
Yokohama has denied press reports that it is aiming to buy a majority of Alliance Tire Group (ATG). Acquisition talk had suggested private equity firm Kohlberg Kravis Roberts (KKR) was in talks to sell what would amount to a majority shareholding of its stake in ATG (which is currently 90 per cent) to Yokohama.
Pirelli & C. S.p.A. is to officially reverse merge with Marco Polo Industrial Holding S.p.A. This transaction will be submitted to the extraordinary shareholders’ meetings on 15 February 2016, with a view to completing during the first half of 2016.
With Michelin buying a stake in Allopneus as well as the complete Blackcircles business in the Spring; and with Apollo purchasing Reifen.com in November, it is fair to say we witnessed a trend towards manufacturer investment in online tyre businesses this year. Dig a little deeper and we are beginning to learn more about how tyre manufacturers are approaching this unavoidably important strategic area. With 2015 being something of a landmark year in this respect, Tyres & Accessories met with Blackcircles founder and managing director Mike Welch in Edinburgh to find out more.