No details of price or further conditions have yet been released, however, according to an official statement on the matter, the parties will only be in a position to disclose this after “certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted, wherever required.”
According to the statement Apollo Tyres’ board of directors gave their approval to the management to proceed with the acquisition of Vredestein Banden today (29 April 2009). Dutch newspaper, De Twentchse Courant Tubantia quoted Vredestein Banden CEO Rob Oudshoorn as saying: “We are relieved and happy…We have had good connections with Indian market leader Apollo for 15 years.”
The two companies are now looking forward to taking advantage of the “considerable synergies [that] can be won.” The move is expected to safeguard jobs in Vredestein’s Enschede, Holland headquarters. Vredestein Banden also expects that the acquisition will contribute to a more stable commercial and financial situation for the company.
On April 1 holding company Amtel-Vredestein N.V. said it received a “binding offer from an industry player” for the purchase of the total share capital of Vredestein Banden BV. At the time, the company emphasised that Amtel-Vredestein exists as a financial holding concern that does not carry out operational activities – all its activities are undertaken by daughter companies Amtel (Russia) and Vredestein Banden BV (Europe). Vredestein Banden B.V. and its subsidiaries, it noted, have a separate (ring fenced) finance arrangement, and thus the parent company’s financial situation does not affect Vredestein Banden in a financial sense. (Tyres & Accessories/Staffordshire, U.K.)
