Date:12/04/2008 URL: http://www.thehindu.com/2008/04/12/stories/2008041255301500.htm

Business

JK Tyre buys Mexican firm

Special Correspondent

NEW DELHI: JK Tyre & Industries on Friday announced the acquisition of a renowned Mexican tyre company, Tornel, buying out the 100 per cent shareholding in the company through the special purpose vehicle (SPV) route.

The acquisition will cost about Rs. 270 crore and the transaction will be completed by the end of May.

The deal is proposed to be financed through a combination of internal accruals and debt.

“With this acquisition, JK Tyre would substantially increase its global footprint and become a billion dollar turnover company,” said Hari Shankar Singhania, Chairman, JK Tyre & Industries, while announcing the major acquisition.