The German-based Continental, which is world’s fourth largest tyre maker announced on 18 April 2011 its decision to acquire Modi Tyres Company, a subsidiary of the listed Modi Rubber. Continental signed an agreement with Modi Rubber to acquire 100 per cent shareholding in Modi Tyres Company Ltd (MTCL).
Modi Tyres already has in place a licensing arrangement with the German company to make Continental branded truck and bus tyres for the Indian market.
Upon completion of the transaction, MTCL will become a fully owned subsidiary of Continental Corporation. The company will then focus on local production and distribution of bias and radial truck/bus as well as radial passenger car tyres for the Indian market.
Continental is also among the leading automotive suppliers worldwide with sales of €26 billion in 2010.
The German company will face the real competition from the domestic players such as MRF, Ceat, JK Tyres and Apollo.
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