Yokohama's acquisition of Alliance Tire Group receives CCI's nod

[caption id="attachment_3531" align="alignnone" width="1024"] Image courtesy Yokohama Europe's official website[/caption]

The Competition Commission of India has approved Yokohama India's acquisition of Alliance Tire Group (ATG). As per the deal, Yokohama has acquired ATG for $1.2 billion. Yokohama India is the wholly-owned subsidiary of Yokohama Rubber Company which is headquartered in Tokyo, Japan. The Alliance Tire Group comprises of three brands - Alliance, Galaxy and Primex. It is a manufacturer of off-highway tyres and is based out of the Netherlands.

Prior to the acquisition, ATG was owned by private equity firm KKR and Co Ltd and a few other entities. The deal is expected to close by July 1, 2016. ATG's products are meant for use on agricultural, industrial, construction and forest vehicles and are sold in 120 countries across the world. However, ATG focuses primarily on North America and Europe as the two markets comprise the bulk of its sales.

The acquisition of ATG by Yokohama is of great importance to the latter as the Japanese tyre maker has no offerings for agricultural and forest machines. The acquisition will help it in strengthening its commercial tyre line-up by helping it tap in off-highway tyre segment.

KKR and Co. Ltd. bought a controlling stake in Alliance Tire Group back in 2013 from Warburg Pincus LLC for an undisclosed amount. The Alliance Tire Group is headed by Ashok Mahansaria of Mahansaria family. The family was responsible for acquiring ATG in 2007 for $150 million with the help of Warburg.