Continental confirms acquisition of Modi Tyres

Three months ago, we posted an announcement from Continental that it has signed an agreement with Modi Rubber LTD. (MRL) for the full acquisition of MRL’s subsidiary Modi Tyres Company Limited (MTCL). Today, we have received word from Continental confirming that the takeover is now complete having passed all regulatory clearances.

Commercial details of the acquisition are mostly undisclosed but it was announced that the deal was valued at approximately €18.5 million. With the deal complete, MTCL now becomes a fully owned subsidiary of Continental Corporation and will be renamed as Continental Tyres India Ltd, focusing on production for the Indian local market.

Nikolai Setzer, member of Continental’s Executive Board and head of the Passenger and Light Truck Tire (PLT) Division said of the acquisition, “India’s truck tyre market is of outstanding relevance worldwide and exceeds with a size of 18 million tires per year already the Western and Central European market.”

Under the new setup, Continental Tyres India Ltd will have its office registered in Delhi with manufacturing facilities situated in Modipuram and Partapur.

KON

See also: Continental acquires Indian tyre maker