Apollo Tyres (NSE:APOLLOTYRE), one of India’s largest tire companies, sealed a deal on Wednesday to purchase North American Cooper Tire and Rubber Company (NYSE:CTB), the New York Times reports. The deal is for $2.5 billion in cash.
The acquisition will give Apollo a foothold in the second-largest tire market in the world, the first largest being China.
Cooper, based in Ohio, is the umbrella company for brands such as Starfire and Mastercraft tires, and according to Reuters, has shown weak growth compared to the three other biggest manufacturers in North America.
In a statement, the chairman of Apollo called the deal a “transformational transaction” that will provide “an unprecedented opportunity to serve customers across a host of geographies.”