Yokohama to buy Alliance Tire Group in deal value of Rs.8,000 cr
Tokyo-based tyre company, Yokohama Rubber Co. Ltd has decided to invest in the global investment firm KKR and acquire all the shares of the Alliance Tire Group (ATG) with a value of around Rs.8,000 crore in order to expand its commercial tyre business. According to the Japanese tyre maker company, they will buy KKR-supported Alliance Tire Group just to expand its business in commercial tyres and the agreement will be decided on 1st July, 2016 when all the required closing procedures containing regulatory approvals will be completed. Through this agreement, Yokohama Rubber will build up its commercial tyre business as the company is not in the business of manufacturing or selling tyres needed for agriculture or for the forestry machinery. ATG has settled its business in the manufacture and sale of tyres for agriculture, industrial, construction and forestry machinery. Apart from this the company also acquires tyre products through contract manufacturers in China and Taiwan. The company sells redial and bias tyres for the aforementioned types of vehicles in 120 countries. “The demand of the agriculture tyres is to increase as a result of growing use of agriculture machinery, which is important to improve agriculture efficiency in order to meet the increasing food needs for the world’s growing population,” said Yokohama Rubber in a statement. The company added, “this move via this agreement will expand the business in commercial tyres as the essential part of the Yokohama Rubber’s tires business plan along with this the company has recently started production of truck and bus tires at a new plant in the Mississippi, US and it plans to continue promoting local production for local consumption."
March 26, 2016 | 01:00pm IST
to success.