“As per company policy we do not comment on speculative reports,” ATG's founder and CEO Yogesh Mahansaria said in a written reply.
KKR bought “controlling interest” in Mumbai-based ATG from rival PEG WarburgPincus for a reported $500 million in 2013. Following the deal, ATG leader Mr. Mahansaria remained in control of the day-to-day management of ATG, and retained a 10-percent stake in the business.
If consumated, the deal would boost Yokohama's presence in the OTR sector considerably. ATG reported sales of $580 billion in fiscal 2014, whereas YRC had $4.7 billion in overall tire sales. The Japanese tire maker does not break out OTR sector sales separately.
Yokohama produces radial OTR tires at one plant in Japan — in Onomichi, where capacity stands at 2,500 metric tons per month — and sources some radial OTR and mining tires from Shandong Xingda Tyre Co. Ltd. of Dongying, Shandong, China.
ATG operates two plants in India — including the firm's newest, in Dahej, Gujarat, that opened in December 2014 — and one in Israel.
Shahrzad Pourriahi is a reporter for European Rubber Journal, a London-based sister publication of Tire Business.