JIAOZUO, China — Aeolus Tyre Co. Ltd. has terminated its pending acquisition of a 90-percent stake in Pirelli & C. S.p.A.'s former commercial tire unit after failing to gain approval in time from Chinese authorities for an overseas acquisition.
Aeolus released a statement saying China's Ministry of Commerce and National Development and Reform Commission failed to grant approval for the overseas acquisition before the Dec. 31 deadline.
The relevant parties were unable to reach a consensus on an extension, Aeolus said, so the deal was terminated.
Aeolus is owned by China National Chemical Corp. (ChemChina).
Despite the obstacle, Marco Polo International Italy S.p.A.'s TP Industrial Holding said in a news release it was planning to pursue, in the commercial and technological areas, the integration of Prometeon Tyre Group.
Prometeon, which represents the commercial tire assets that were separated from Pirelli last year, said it will continue its integration "in an appropriate time frame in accordance with the laws and regulations."
Besides TP Industrial's 52-percent shareholding, Prometeon's other shareholders are Cinda International Holding (CINDA) — a Chinese investment fund — with 38 percent and Aeolus with 10 percent.
Prometeon said it will continue to grow its business and "commercial presence with its new go-to-market approach and commercial organization."
Meanwhile, the planned deal between Aelos and Pirelli, priced at $275 million, also included a 70-percent stake in Guilin Beili Tire, another ChemChina subsidiary.
The transaction's earlier agreement stipulated it would be terminated automatically on Dec. 31 if the deal had not received necessary regulatory approval from Chinese authorities.
"ChemChina Rubber Corp. will reconsider injecting those industrial tire businesses and assets into Aeolus when the time is ripe," according to a subsequent announcement by Aeolus.
"Although the deal is terminated, our business integration is still in progress," the announcement added. "Aeolus will continue to benefit from our technology assistance agreement with Pirelli."
Aeolus' shares have resumed trading on the Shanghai Stock Exchange.