Apollo completes sale of South Africa unit to Sumitomo
The transaction allows Sumitomo Rubber to take over ATSA and a car-tyre plant in Ladysmith
Mumbai: Apollo Tyres Ltd. said on Monday that it has completed the sale of its South Africa unit Apollo Tyres South Africa (ATSA) to Sumitomo Rubber Industries.
The Gurgaon-based tyre maker had announced the $60 million deal in May.
The transaction allows Sumitomo Rubber, a unit of the Japan-based Sumitomo Group, to take over ATSA and a car-tyre plant in Ladysmith.
Apollo Tyres had acquired South Africa headquartered Dunlop Tyres International in 2006 for Rs290 crore in an all-cash deal and later renamed it to ATSA. Apollo had the brand rights to sell the Dunlop brand in 32 countries of Africa that have also been transferred to Sumitomo Rubber under the deal.
Apollo, however, will be retaining its plant in Durban to expand in Africa. The plant manufactures truck and bus radial tyres and off-highway tyres used in the mining and construction industries.
“Apollo retains one plant in South Africa and has the ability to develop further the markets for its global brands—Apollo and Vredestein," Apollo Tyres chairman Onkar S. Kanwar told PTI news agency on 29 May.
Apollo will continue to sell Apollo, Vredestein and Regal branded tyres in Africa.
“The companies (Apollo and Sumitomo Rubber) will also undertake contract manufacturing of their respective brands at each other’s facility to have locally manufactured products available for the market," Apollo Tyres said in a statement on Monday.
PTI contributed to this report.
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