Apollo Tyres completes acquisition of Dutch tyremaker

18 May 2009

Apollo Tyres has completed acquisition of the Netherlands-based Vredestein Banden BV (VBBV), the company said on Monday, without disclosing the cost of the deal.

The company, which had earlier planned to set up a greenfield plant in Hungary, instead acquired the Dutch plant of bankrupt Russian tyre major Amtel-Vredestein NV.

The Dutch company – VBBV - however, has not been affected by bankruptcy at the Russian parent. Vredestein Banden reported an eight per cent year-on-year growth and a 305 million euro turnover last year.

Apollo Tyres, which later dropped plans for the Hungary project, said it has also got all regulatory approvals and consent from Dutch courts to acquire VBBV.

Local opposition to the plant site had, last year, forced Apollo to withdraw from its proposed location in Hungary.

"Vredestein Banden is a very high premium tyre maker in Europe and this gives us the platform to immediately get into the European market and also take the Apollo brand there," reports quoted Apollo Tyres vice chairman and joint managing director Neeraj R S Kanwar as saying.