LONDON — Yokohama Rubber Co. Ltd. and China's Aeolus Tyre Co. Ltd. reportedly are in an advanced stage of talks regarding a deal that would see the former Pirelli & C. S.p.A. industrial/commercial tire unit Prometeon Tire Group (PTG) split between the two companies.
The tire makers could make an announcement about the deal as early as the first quarter of this year, according to two separate sources, who spoke to European Rubber Journal on conditions of anonymity.
With a pair of tire plants in Brazil and single plants in Egypt and Turkey, Milan-based PTG manufactures and commercializes Pirelli-branded truck, bus, farm and OTR tires under license.
According to one of contacts, under the proposed deal, Aeolus would take over Egypt-based Alexandria Tires, while Yokohama would acquire the rest of the company's operations, including a plant in Izmit, Turkey, and the two Brazilian factories.
"Negotiation are in progress with YRC and Aeolus, however the ownership structure is not finalized," another source close to Prometeon said.
In September last year, ERJ reported on ongoing talks between Yokohama, Aeolus and Prometeon, citing two separate sources.
At the time, a source close to PTG minority shareholder Aeolus said negotiations were underway on the subject — without elaborating.