Indian tyre manufacturer Apollo Tyres has signed a deal to acquire US-based tyre maker Cooper Tire & Rubber Company for about INR145bn ($2.49bn).
The agreement has been approved by the boards of directors of both companies and under the deal Cooper stockholders will receive $35 per share in cash.
Following the acquisition, Cooper will become a privately held company by the Indian tyre manufacturer and its common stock will not be traded on the New York Stock Exchange.
The combined company formed after the transaction is claimed to be the seventh-largest tire company in the world and have a range of brands with the ability to address customer needs across the world, while representing combined revenue of $6.6bn in 2012 sales.
Apollo Tyres chairman Onkar Kanwar said the transaction provides an opportunity to serve customers across a host of geographies in both developed and fast-growing emerging markets around the world.
"The combined company will be uniquely positioned to address large, established markets, such as the US and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth," Kanwar added.
The acquisition is subjected to regulatory approvals and other customary closing conditions along with approval by Cooper's stockholders and is expected to be completed in the second half of 2013.
