The US court has struck out the case against Indian Apollo Tyres brought by US firm Cooper Tire and Rubber. Apollo was in a deal to buy Cooper but the latter later pulled out.
“Pursuant to the ruling by Vice Chancellor Glasscock on October 31, 2014 that Apollo was not in breach of any of its obligations under the Merger Agreement, Apollo Tyres is pleased with last week’s final dismissal of the Delaware litigation filed by Cooper Tire and Rubber against Apollo whereby Cooper has expressly given up all its claims against Apollo, thus vindicating Apollo’s case,” Apollo Tyres said in a press statement
In June last year, Apollo had agreed to acquire Cooper Tire for US$2.5 billion on a purely cash basis.
However, on December 13, 2013 Cooper Tire terminated the agreement (the agreement would have made the merged company to be the seventh largest tyre manufacturer in the world).
Delaware Chancery Court Judge Sam Glasscock III in the judgement had said Cooper failed to comply with its contractual obligations.