The shareholders of Cooper Tire & Rubber Co had voted to accept the merger with Apollo Tyres Ltd. This would pave the way for the completion of the USD2.5 billion deal, said a Bloomberg report. This was also the biggest acquisition deal by an Indian firm in the United States.
Yesterday, the shareholders of Cooper Tire that hold more than 74% stake in the company's outstanding stock voted in favor of the deal. This was according to a statement issued by the company yesterday. Last June, Apollo said it would pay USD35 per share piece to buy Cooper Tire, according to a Bloomberg report. The report also said that the approval was given even amid objections raised by labor unions in the US and China toward the transaction.
Bloomberg reported that Apollo had been looking to counterbalance a slow demand in India and Europe's automobile industry. The New Delhi-based firm said it aimed to be among the top 10 tire manufacturers in the world by 2016.
As of 11:13 a.m. in Mumbai, the shares of Apollo fell as much as 8.9%. Apollo's shares traded 2.3% lower at INR65.15, the lowest since September 13. Since the acquisition for Cooper was made last June 12, the Apollo's stock declined by 29%. Meanwhile, Cooper shares increased 25% in the period, according to a Bloomberg report.
Join the Conversation