BUSINESS

Apollo Tyres buys Dunlop in South Africa

Source:PTI
April 24, 2006 18:15 IST
Apollo Tyres Ltd on Monday announced acquisition of Dunlop Tyres International Ltd (South Africa) in a Rs 290 crore (Rs 2.9 billion) all-cash deal.

All regulatory approvals in India and South Africa alongside the transfer of shares have already been completed.

Dunlop South Africa will now become a part of the Apollo Tyres Group, the company said in a statement. Apollo's board of directors had approved this acquisition on January 31, 2006, at a meeting in Mumbai.

"Dunlop marks the first of Apollo's global footprint, expanding the reach of our exports and enlarging our customer base. This is our springboard into the global arena," Onkar S Kanwar, chairman and MD said.

He said the company would use the Dunlop distribution channels for exports and to take the Apollo brand into Africa, and would also bring in brands made by Dunlop to India.

Through the acquisition, Apollo's base of manufacturing units enlarges to include facilities in Durban and Ladysmith in South Africa and in Bulawayo and Harare in Zimbabwe, it said.

Dunlop South Africa is headquartered in Durban, having subsidiaries in Zimbabwe and the UK. This acquisition will lead to a distinct set of synergies for the Apollo Tyres Group in product profile, market access, R&D, manpower resources and the ability to optimise on cost, product and manufacturing facilities.

As part of the Apollo Tyres Group, Dunlop South Africa will continue to be managed by the existing management team in South Africa and Zimbabwe.

Source: PTI
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