Apollo Tyres of India remains open to future strategic acquisitions despite the collapse last year of a potential $2.5 billion deal with the Cooper Tire and Rubber Company, its vice chairman said Friday.
The deal would have been the largest-ever Indian acquisition of an American company and would have made Apollo one of the 10 largest tire producers in the world, a long-term goal.
The transaction, which was derailed by problems with a joint venture in China and a dispute with a labor union in the United States, ultimately landed the companies in court, with Cooper trying to force the merger’s completion. Cooper terminated the transaction in December, and the companies are now sparring over potential breakup fees.
Neeraj Kanwar, Apollo’s vice chairman and managing director, told DealBook that the Indian firm was open to acquisitions that would expand its geographic reach, give it access to new technology or propels it into the top echelon of tire producers worldwide.
“It has to be a good marriage,” said Mr. Kanwar, who was attending the World Economic Forum.
Mr. Kanwar said that Apollo did not expect to seek another acquisition in the United States any time soon, but will instead shift its focus to other potential growth markets in Brazil, Africa and parts of Asia.
The company has manufacturing facilities in India, the Netherlands and South Africa, producing tires under the Apollo and Vredestein brands for passenger cars and commercial vehicles. It employs about 16,000 people worldwide.
Apollo reported operating income of 34.3 billion rupees, or about $550 million, in the second quarter that ended in September.
Source: The New York Times
Published: 24 Jan 2014