Apollo Tyres refutes Economic Times report on Kumho acquisition

Apollo Tyres said it ‘strongly denies’ the Economic Times report that it was trying to acquire South Korea’s No. 2 tyre maker Kumho Tire for $900 million.

“Apollo Tyres strongly denies the story headlined ‘Apollo Back in Kumho Race as Geopolitics Sours China Deal’ that appeared in the print edition of ‘The Economic Times’ on Oct 2, 2017,” the tyre company said.

“The company would like to reiterate that it has no intention of making any attempts to enter the process of acquiring Kumho Tyres, as stated in the story,” it said.

The ET said the deal would have made Apollo rank among the top seven with a strong presence in the US and Europe.

The three are among four suitors shortlisted with the fourth said to be French heavyweight Michelin, the report said, quoting sources.

“Kumho will also give it a leading position in the Asian tyre market. Present in the US market since 1975, Kumho has built up a presence in the replacement equipment (RE) market there,” the report said.

Kumho posted revenue of $2.3 billion and net income of $100 million in FY15, ET said.

It has 5,000 employees, three factories in South Korea and exports to Europe and the US.