By Alex Kapadia
India’s leading tyres manufacturer is set to buy the troubled Dutch company Vredestein Banden, according to a newspaper report.
Apollo tyres is likely to close the deal to take-over the European tyres manufacturer for around $300 million within the next fortnight, the Hindustan Times has reported.
Neeraj Kanwar, vice chairman and joint managing director of Apollo Tyres, is reported as saying: “We are looking at closing the deal by the middle of this month.
“Vredestein is a premium tier 1 tyre manufacturer with a portfolio of high-end, high speed rated passenger car tyres going up to a speed of 300 kilometers per hour.”
Mr Kanwar, who saw shares in the company rise after his announcement, added: “We have a high synergy, but will be able to give you details on this only once we achieve closure.”
Last week the Russian-Dutch arm of the business, Amtel-Vredestein, was declared bankrupt by a court in the Netherlands.
However, it emerged that its subsidiary, Vredestein Banden, was saved because Apollo tyres had been in the process of attempting to acquire it for several months.