Industry News

Alliance Tire Group acquisition gets CCI approval

India: Following the company’s announcement in March, Yokohama has entered into a transaction of USD1,179 million as the equity value of the acquisition. Kohlberg Kravis Roberts (KKR), a multinational private equity firm, is the major stakeholder in ATG, while the remaining is held by International Finance Corporation along with other entities.

Alliance Tire Group ventures into the development, manufacturing and sale of off-highway-tires used in agriculture, forestry, and industrial vehicles. Also, the company spreads over 120 countries, including India. Yokohama Rubber Co. has already set up a wholly-owned subsidiary, Yokohama India Pvt Ltd (YIPL), which manufactures tires for trucks, buses and off-highway vehicles, along with other related products.

Competition Commission of India (CCI) has given its approval to the proposed acquisition of ATG by Yokohama. In order to purchase all the shares of Alliance Tire Group, Yokohama has entered into an agreement with Kohlberg Kravis Roberts (KKR) along with other concerned parties.

According to a recent report published by TechSci Research, India Tire Market Forecast and Opportunities, 2021’’ Favourable inflationary scenario, expanding middle class population and increasing national disposable income, tire sales across all the automobile segments is expected to grow in the country. Also, presence of major automobile OEMs along with growing automobile sales would boost the demand for tires in the country.

TechSci Research is of the view that this strategic move by Yokohama would strengthen its hold in Indian as well as other tire markets across the globe. Moreover, Yokohama would benefit from the established reputation of Alliance Tires in the off-highway tires segment, thereby making it a profitable strategic move.

Relevant Reports

Automotive Fuel Feed Pumps Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type Gasoline Fuel Pump, Diesel Fuel Pump, Others), By Application (OEM, Aftermarket), By Region, Competition,

Automotive | Jul, 2024

The Global Automotive Fuel Feed Pumps Market is propelled by the increasing demand for fuel-efficient vehicles and the growing adoption of advanced fuel injection systems, driving the need for efficient and reliable fuel feed pumps in the automotive industry. Additionally, stringent emission regulations worldwide contribute to the market's growth as automakers focus on optimizing fuel delivery systems for cleaner combustion.

Relevant News