Pirelli & Aeolus to move ahead with their plans to cooperate.
Aeolus Tyre Co. Ltd. has agreed to buy China National Chemical Co.’s two TBR subsidiaries & a 10-percent stake in Pirelli Industrial, the Italian tyre manufacturer’s commercial tyre business unit. At the same time, the deal that was agreed to earlier this month also calls for Aeolus to sell an 80-percent stake in its passenger car tyre unit to Pirelli.
The TBR aspect of the deal involves ChemChina’s Double Happiness Tyre Industrial in Taiyuan, Shanxi Province, with 2.1 million unit annual capacity, & Qingdao Yellowsea Rubber in Qingdao, Shandong Province, with 1.2 million unit annual capacity.
“The agreement will require a further internal & external approvals as well as patent-licensing agreements to be signed by Aeolus & Pirelli”, according to an Aeolus statement. All transactions will be settled in cash & Aeolus is projected to pay a difference of about $125 million, based on estimates of the targets’ net asset value. The company’s shares have resumed trading.