NEW YORK - India's Apollo Tyres will take over Cooper Tire & Rubber in a $2.5 billion all-cash deal, creating the world's seventh-largest tire maker, the two firms announced Wednesday.
The companies said the takeover will combine complementary product lines and geographic coverage, making it a force with $6.6 billion in sales in established markets like the United States and Europe and high-growth markets like China, India and Latin America.
Apollo will pay Cooper shareholders $35 a share, a 42.5% premium on Tuesday's closing price of $24.56, they said in a statement.
"This transformational transaction provides an unprecedented opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world," said Onkar Kanwar, chairman of Apollo, which is based in Gurgaon just outside New Delhi.
Cooper chief executive Roy Armes called the deal a "compelling transaction" that is in the best interest of the company's shareholders and beneficial for employees.
"Together, our two organizations have almost no geographic overlap and significant opportunities for growth."
Apollo produces Apollo and Vredestein brands while Cooper brands include Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.
Copyright Agence France-Presse, 2013
