According to CNBC, India’s Apollo Tyres, based in Chennai, India agreed to acquire U.S. based Cooper Tires for $2.5 billion in an all-cash transaction. Founded in 1976, Apollo has annual revenues of $2.5 billion with 59% of its revenues coming from India.
This deal will make the Indian firm the seventh largest tire maker in the world. With a seven percent decrease in sales in India and sales at a 20 year low in Europe, Apollo is looking to tap into the U.S. market which has shown growth at the end of the year. The acquisition of Cooper Tires, the 11th largest tire company with annual sales of $4.2 billion, allow Apollo to have a presence in the lucrative American market. In 1988 Japan’s Bridgestone bought American tiremaker Firestone. Korean companies Hankook and Kumho have expanded their American presence.
