New Delhi: Leading tyre maker Apollo Tyres today said it has completed the acquisition of the Netherlands-based Vredestein Banden BV (VBBV) for an undisclosed sum from Russia’s bankrupt largest tyre manufacturer Amtel-Vredestein NV.
The company, which was earlier planning to set up a greenfield plant in Europe and had even identified a location in Hungary but was later withdrawn, said it has shelved the plan following the acquisition of the Dutch firm.
Apollo Tyres said it has got all regulatory approvals and consent from the judge of the Dutch Courts to acquire VBBV from its parent company, Amtel-Vredestein NV (AVNV), that was declared bankrupt on 29 April, 2009. VBBV, however, was not affected by the bankruptcy.
“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,” Apollo Tyres vice-chairman and joint managing director Neeraj R S Kanwar told PTI.
Asked about the financials involved in the acquisition, he said: “We are not disclosing the details but as far as Vredestein Banden is concerned it is a profitable company with 8% year on year growth with 305 million euros of turnover.”