By Denna Bowman
Michelin looks set to sell its remaining shares in Apollo tyres, emerging reports claim.
Just two weeks ago Michelin sold 3.3 per cent of its shares in the Indian tyres manufacturing firm for £6.7 million through open market sales.
Now the French tyres manufacturer is intending to sell the remaining 7.3 per cent shareholding it has in Apollo, according to Indian news reports.
The company has held shares in Apollo Tyres since it acquired a 14.9 per cent stake in early 2004, a deal made at a time when a truck and bus radial joint venture between the two companies seemed likely, according to Tyres and Accessories magazine.
Despite the venture’s failure to get off the ground and the September 2005 announcement that Michelin would acquire Apollo’s share in the joint venture, Michelin maintained its stake in the Indian company.
According to reports, the French tyre manufacturer has made “a reasonable profit” from the sale of its Apollo shares.
The news coincides with reports that Michelin is looking to invest $1.5 billion in India over a 10-year-period to make and market radial tyres and tubes in the country.
The Indian media are reporting that Apollo tyres have already given a no-objection certificate (NOC) to Michelin to start its own operations in the country.