New Delhi: Apollo Tyres Ltd has said it has closed a deal with Japan’s Sumitomo Rubber Industries to sell its South African business for $60 million.
According to a statement issued here, Sumitomo will take over Apollo Tyres South Africa, including the Ladysmith passenger car tyre plant and Dunlop brand rights in 32 African countries.
However, Apollo will retain the Durban plant, which produces truck and bus radial tyres and off- highway tyres that are used in the mining and construction industries.
Post deal, Apollo will continue to sell Apollo, Vredestein and Regal branded tyres in Africa, the company said.
Both companies will undertake contract manufacturing of their respective brands at each other’s facilities to have locally manufactured products available for the market.
The employees, retained by Apollo in South Africa, will work for the newly formed company, Apollo Durban (Pty) Ltd.
No job cuts
No jobs have been lost in the transaction. Apollo Tyres had first announced the deal in May this year.
The company’s shares ended at Rs 80.95 on the BSE, up 0.62 per cent from the previous close.
"Believer - Humanitarian - Habit of Success" Sukumar Balakrishnan is the Founder of JB GROUP, a 500 Crore National Organization with over 150 Direct & 1200 indirect professionals operating from 5 major cities in India. Jayalakshmi Balakrishnan Group, a multi-faceted group venturing into, E- Commerce and Import-Export (INNOKAIZ), Retail and Wholesale (JB MART), Food and Beverages (KRISHNA FOODS ), Real Estate (Constructions on sites, Interior scaping, Facility Management)
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