By Denna Bowman
Continental has completed its acquisition of India’s Modi Tyres for a round $25 million.
The German tyres manufacturer will rename its new company Continental Tyres India Ltd.
The new business will focus on local production and distribution of bias and radial tyres as well as radial passenger car tyres for the Indian market.
Continental Tyres India will have its registered office in Delhi with manufacturing facilities in Modipuram and Partapur. An integration team is working with the new employees on achieving an optimal start for Continental Tyres India, with the full set of resources now available from Continental.
Both parties have agreed to keep other commercial details of the transaction confidential, however, the total amount that Continental paid to buy 5.6 million shares in Modi Tyres Company includes a non-compete fee $3.87 million.