Cooper Tire Ends Buyout Agreement With Apollo
Cooper Tire & Rubber Co. is calling off its proposed $2.2 billion sale to India's Apollo Tyres, a deal that would have created the world's seventh largest tire company.
The Findlay, Ohio, company said Monday that financing is no longer available and continues to claim, as it has for months, that Apollo breached the terms of the agreement.
The boards of both companies and Cooper shareholders had approved the buyout, but negotiations with the union representing Cooper employees became a sticking point.
After Apollo sought a better price citing labor issues in China and weaker profit, Cooper accused the company of stalling.
Cooper took its claim to a Delaware court, but the court ruled last month that Apollo did not breach its obligation to quickly reach a pact with the United Steelworkers union.