Cooper gets green light to acquire Chinese tiremaker
Cooper Tire & Rubber Co. can proceed with its purchase of one of China's largest tire manufacturers, Shandong Chengshan Tire Co. Ltd., having received government approval. Cooper will become majority owner of the company with a 51% stake.
Two new companies are slated to be formed when the deal goes through: Cooper (Shandong) Passenger Tire Co. Ltd. and Cooper Chengshan (Shandong) Truck Tire Co. Ltd.
Chengshan builds passenger and light truck radials, in addition to bias and radial truck tires.
Cooper says Chengshan is China's third-largest tire manufacturer with expected sales of $500 million in 2005.