TUPLEO, Miss. – Monday, Cooper Tire ended its long awaited $2.5 billion merger with Indian company, Apollo Tire.
“It is time to move our business forward,” said Cooper Chairman, Chief Executive Officer and President Roy Armes. “While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available. The right thing for Cooper now is to focus on continuing to build our business.”
Cooper blames Apollo for stalling their closing deal, even though Cooper had issues with labor Unions at their facilities in both China and the US when the deal was announced.
In October Cooper tried to force Apollo to close the deal in court but failed.
Since the merger ended Cooper’s shares have fallen about 4 percent and they may owe Apollo a $50 million in breakup fees.
Cooper owns facilities in both Clarksdale and Tupelo.
You can read Cooper’s comments on the termination here.
