Cooper Tire & Rubber Co. on Tuesday unveiled the valuation of its joint venture with Chengshan Group Company Ltd., marking a step forward as the companies seek to resolve its future ownership.
The venture, known as Cooper Chengshan Tire Company Ltd., was valued at about $440 million by an independent firm responsible for determining a fair market value for the venture on a stand-alone basis, Cooper Tire said.
“We look forward to final resolution of the ownership of CCT as Cooper continues to pursue our growth plans for China,” said Cooper Tire Chief Executive and Chairman Roy Armes.
The venture’s facility in Rongcheng, China, was a source of contention in Cooper Tire’s failed $2.2 billion merger with Indian suitor Apollo Tyres Ltd. 500877.BY +0.27% The merger fell apart in December after the factory in eastern China revolted, with workers going on strike soon after the merger was originally announced in June.
With the valuation of the venture, Chengshan now has 45 days to decide to purchase Cooper Tire’s 65% interest or opt to sell its own 35% interest to Cooper.
If it doesn’t move on either option, Cooper Tire has said it had the right to purchase Chengshan’s 35% interest. In the event that neither company makes a move, the joint venture will continue as currently structured, Cooper Tire has said.
Even if Chengshan did buy its stake in the joint venture, Cooper Tire has said CCT still would produce Cooper Tire-brand products for a minimum of three years.
Apollo’s takeover of Cooper Tire, valued at $2.5 billion, would have been the largest Indian takeover of a US company.
Earlier this month, Cooper Tire said its second-quarter profit rose as some expenses declined, while volume climbed across most of its regions.