Continental AG, the world’s fourth largest tire manufacturer, has acquired 100% shareholding in Modi Tyres Company Limited (MTCL), a subsidiary of Modi Rubber LTD. Continental first announced the deal in April (see Continental buys India-based Modi Tyres).
Continental says it has now received the necessary regulatory clearances and has completed the acquisition. The purchase price consideration for 100% of the shares of MTCL is 18.5 million Euros ($26 million).
MTCL has now become a fully owned subsidiary of Continental Corp. and will be renamed as Continental Tyres India Limited. The new entity will focus on local production and distribution of bias and radial truck and bus tires as well as radial passenger car tires for the Indian market.
“The acquisition of MTCL underlines our commitment to the Indian market,” says Nikolai Setzer, a member of Continental’s Executive Board, and head of the Passenger and Light Truck Tire division. “It is part of our strategy to invest into local production of both passenger car tires and truck tires in growing markets in Asia.”
For the commercial vehicle tire business, for which Setzer will be responsible within Continental as of August 1st as well, the move is an important signal: “India’s truck tire market is of outstanding relevance worldwide and exceeds with a size of 18 million tires per year already the Western and Central European market.”
