Tire Industry Top Ten M&A Events in 2016

Changes in many corporate assets mean changes in the tire market, and also indicate the rapid development of the industry.

The following are the top ten M&A events in the tire industry in 2016.

Tire industry mergers and acquisitions

Yokohama Rubber buys India ATG tires

In April 2016, Yokohama Rubber Co., Ltd., the parent company of Yokohama Rubber Co., Ltd., acquired all shares of the Alliance Tire Group BV (ATG), the holding company of the Alliance Tire Group, for US$1.179 billion.

Through this acquisition, Yokohama Rubber has expanded its camp of commercial vehicle tires, added tires for agricultural and forestry machinery, and further accelerated the globalization process.

Sen Qilin Acquires Thailand Lisheng Rubber Industrial Park

On April 11, 2016, Qingdao Sen Kirin Group Co., Ltd. formally acquired Thai Lisheng Rubber Industrial Park.

Sen Qilin Acquires Thailand Lisheng Rubber Industrial Park

Sen Qilin said that the industrial park plans to introduce 10 tire processing companies and 10 upstream and downstream supporting enterprises to build a comprehensive park that is based on the rubber industry, upstream and downstream, and multi-functional.

The total investment of 3.5 billion baht in mergers and acquisitions is a major move for Mori Kirin to further expand the international market. It has a good demonstration effect for Chinese tire companies to “go global”.

Trelleborg takes over CGS Holdings

In June 2016, the Swedish Trelleborg Group acquired CGS Holdings with 10.9 billion Swedish kronor (approximately RMB 7.97 billion) in cash.

CGS's brand, Mitas, is the world's leading manufacturer of agricultural tires and specialty tires.

The total sales of the two companies together amounted to 30 billion Swedish kronor by the end of 2015.

With this acquisition, Trelleborg has established itself as a global leader in agricultural tires and has significantly increased its position in the tire manufacturing sector.

Kumho is favored by many companies

In September 2016, Kumho Tire ’s largest creditor’s shareholder decided to sell 42% of Kumho Tyre’s shares, with a market value of approximately 1 trillion won (approximately 5.9 billion renminbi).

Kumho is favored by many companies

Up to now, five companies have given preliminary quotations, including China's Shanghai Aerospace Industry Corporation and Double Star Tire, India Apollo and others.

Park San-ho, chairman of Kumho Asiana Group, is not willing to raise funds through relevant channels and is preparing to repurchase the company.

Bridgestone absorbs French tire chain retailers

In September 2016, Bridgestone announced the completion of a partial equity deal with French tire retailer Pneu à bas prix.

After the acquisition was completed, Bridgestone added about 450 retail outlets in France and its market network was further expanded.

Aeolus holds hands with Pirelli

On October 26, 2016, Fengshen Tire purchased a 10% stake in Pirelli Industrial tires and related procedures were completed.

CNPC purchased Pirelli in October 2015 and integrated it with Aeolus Tyre.

At the same time, it did not stop the pace of acquisitions. In June 2016, Aeolus merged CSR Automotive and Qingdao Huanghai Rubber and reintegrated with Pirelli.

Through this series of complex acquisitions, Fengshen Tire will become a large multinational tire company.

Michelin buys Brazilian tire manufacturer

In August 2016, the Michelin Group acquired Levorin Pneus e Camaras, a Brazilian bicycle and motorcycle tire manufacturer.

In 2015, Levorin had 2,000 employees in its facilities in Sao Paulo and Manaus, Brazil, with sales of $155 million.

This acquisition enhances the production capacity of Michelin tires in South America and further extends its production line.

Continental merges HOUSTON tyres

In November 2016, Continental acquired Hoosier Tire and Rubber Group for approximately EUR 126 million.

Howe Tire is the world's largest manufacturer of racing tires. All of its tires are manufactured in the United States, producing more than 1,000 different types of tires.

This merger has added an American stronghold to the Continental Group, which is headquartered in Europe, and further enhanced its production capacity of sports tires.

Hengfeng wins De Rui Bao

On November 25, 2016, some assets of Deruibao Tire Co., Ltd. and Shandong Yilong Rubber Tyre Co., Ltd. were successfully auctioned.

Shandong Hengfeng Rubber & Plastic Co., Ltd. won these assets and the final transaction price was 891 million yuan.

Before the bankruptcy in February 2015, Drepo Tire Co., Ltd. had an annual output of 6 million steel tires and 12 million steel tires, ranking among the top 75 tires in the world.

After winning Drepo, Hengfeng Rubber and Plastic's tire production capacity increased significantly.

Solid Platinum Acquiring Greeda

On December 1, 2016, Cooper Tire & Rubber announced that it had completed the acquisition of a 65% equity interest in Qingdao Geluida Rubber Co., Ltd. The new company officially changed its name to Cooper (Qingdao) Tire Co., Ltd.

Solid Platinum Acquiring Greeda

After the acquisition was completed, Cooper Tire added another stronghold in China to get rid of the single source of all-steel supply.

At the same time, its global production system has also increased to eight tire production plants.

High precision double side surface grinding or fine grinding is a super finishing process performed by removing material from two surfaces of a component resulting in extremely precise geometric accuracy and surface finish. Typically, it is the last grinding step of a mechanical production chain utilized to improve and/or correct the geometry of parts coming from sintering, sawing, molding or similar operations. Depending on the application, the stock removal also can be taken from just one surface.

GMM1200 Double Side Surface Grinding Machine

Disc Grinder,High Precision Surface Grinding Machine,Precision Surface Grinder,Oil Nozzle Surface Grinding Machine

Xinxiang SKF machinery Co., Ltd. , https://www.facegrindingmachine.com