FINDLAY (Ohio): India’s Apollo Tyres Ltd is buying Ohio’sCooper Tire & Rubber Co for about $2.22 billion.
Apollo says the combined company will be one of the world’s largest tire makers, with a strong presence across four continents and combined 2012 sales of $6.6 billion.
Under the terms of the deal, Cooper shareholders will receive $35 per share in cash. The price represents a 42 per cent premium over Cooper’s Tuesday closing stock price.
Cooper shares jumped 40 per cent in Wednesday pre-market trading.
Ohio-based Cooper says the deal is in the best interests of its shareholders.
The sale, which remains subject to Cooper shareholder and regulatory approvals, is expected to close in the second half of this year.