Cooper Tire to end merger with Apollo Tyres
FINDLAY -- Cooper Tire & Rubber Co. announced today it has terminated its merger agreement with Apollo Tyres, one of Indian's largest tire makers.
Plans for the merger, announced in the summer, was never finalized. It has been troubled with problems at Cooper Tire plants in China and with labor agreements in the United States. Litigation has ensued, and the Findlay tire maker has indicated it wanted to end the merger.
“It is time to move our business forward,” Roy Armes, Cooper Tire chairman and chief executive officer, said in a statement.
“While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available. The right thing for Cooper now is to focus on continuing to build our business.”
The company CEO touted Cooper Tire's financial strength, expecting to end the fiscal year "with a strong balance sheet."
There was no immediate comment from Apollo Tyres.