Continental to acquire Modi Rubber’s tyre subsidiary

April 18th, 2011 - 6:28 pm ICT by IANS  

New Delhi, April 18 (IANS) International tyre manufacturer Continental Corporation Monday said it has entered into an agreement with Modi Rubber LTD. to acquire its tyre subsidiary.

“Continental has signed an agreement with Modi Rubber LTD. (MRL), for the acquisition of a 100 percent shareholding in Modi Tyres Company Limited (MTCL),” said the company in a statement.

The financial details of the transaction was not immediately available as the completion of the agreement was in initial stages and would require fulfilment of various conditions.

“The completion of the transaction still depends on the fulfilment of several conditions,” the statement said.

The company further said that the transaction was in line with its strategy to invest in growing markets in the Asian region.

“The company will focus on local production and distribution of bias and radial truck/bus tyres as well as radial passenger car tyres for the Indian market,” the statement added.

Currently, Continental Corporation is the world’s fourth largest tyre manufacturer with sales of 26 billion euros including that of other automotive systems like brake systems, vehicle electronics.

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