FINDLAY, Ohio (Dec. 30, 2013) — Cooper Tire & Rubber Co. has terminated its merger agreement with India's Apollo Tyres Ltd. after six months of disputes and court battles.
The move comes a day before the merger pact's deadline for Apollo to terminate the agreement if the parties have not concluded the negotiated terms satisfactorily.
"It is time to move our business forward," said Cooper Chairman, CEO 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.
Apollo responded by threatening to pursue "legal remedies for Cooper's detrimental conduct."
Mr. Armes said, "The right thing for Cooper now is to focus on continuing to build our business."
Apollo said it "is disappointed that Cooper has prematurely attempted to terminate our merger agreement. While Cooper's lack of control over its largest subsidiary and inability to meet its legal and contractual financial reporting obligations has considerably complicated the situation, Apollo has made exhaustive efforts to find a sensible way forward over the last several months, however, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both companies and their shareholders.
"Importantly," the Indian tire maker said, "Apollo has many other compelling growth opportunities around the world that we are continuing to pursue.
"Our business is performing well — as evidenced by the strong top and bottom line results we reported last quarter — and we remain focused on executing our standalone strategic plan to maximize value for Apollo's shareholders. We are confident that Apollo is well-positioned for continued success."