Cooper Tire Stockholders Okay Merger With Apollo Tyres - Update

(RTTNews) - Cooper Tire & Rubber Co. (CTB) said Monday stockholders approved its $2.5 billion acquisition by India-based Apollo Tyres Ltd., in a deal that will create the seventh largest tire company in the world.

Over 74 percent of Cooper Tire's outstanding common shares voted in favor of the deal, the Findlay, Ohio-based company said.

The merged entity will have $6.6 billion in yearly revenue, with a presence in the largest tire market of North America as well as lucrative markets of India and China.

The deal is to close by the end of this year, despite some hurdles due to opposition from workers at Cooper Tire's joint venture in China and labor issues at home.

In June, Apollo Tyres, based in Gurgaon, India, agreed to acquire Cooper Tire for $2.5 billion in cash. As per the terms, Cooper Tire stockholders will receive $35 per share in cash.

Apollo Tyres was founded in 1972. The company's premium and mid-tier brands include the flagship Apollo brand and Vredestein. Apollo Tyres has manufacturing units in India, the Netherlands, and South Africa.

Cooper Tire, the eleventh-largest tire company in the world by revenue, was founded in 1914. Its brands include Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon.

In August, Cooper Tire posted a lower quarterly profit, as sales fell amid weak business conditions, and expressed caution about volumes in the near term.

Shares of Cooper Tire are trading at $30.79, up $0.12 or 0.39%, on a volume of 768 thousand shares on the NYSE.