Section of Potential Buyers
Now, five global tire makers, such as China’s Shandong Linglong Tyre and India’s Apollo Tyres, are competing to acquire South Korea's No. 2 tyre maker Kumho Tire. Germany’s Continental AG was eliminated from the list of candidates for acquisition.
According to investment banking industry sources on November 16, creditors, including Korea Development Bank, selected five tyre makers, such as Linglong Tyre, the largest commercial tyre maker in China, and Apollo Tyres and Chinese chemical firm Sinochem, for the shortlist and notified them individually. Also, they included a strategic investor, which joined the bid after forming a consortium with financial investors, and a foreign automotive component maker in the shortlist.
Continental AG, the world’s fourth largest tyre manufacturer, participated in the preliminary bid with Michelin of France, Goodyear Tire of the United States and Bridgestone of Japan, but they unexpectedly failed to be included in the list. An official from the industry said, “Continental AG offered a condition that cannot be accepted so creditors didn’t include it in the shortlist.”
Meanwhile, creditors will provide five candidates with an opportunity to conduct a due diligence for two months. Then, they will have final bids and select a preferred bidder in January next year.