NEW DELHI, India (Aug. 12)—Apollo Tyres Ltd. and financially ailing Modi Rubber Ltd. are negotiating the sale of one of Modi's tire plants to Apollo, officials for the two companies said recently. The deal, should it go through, would begin with Modi making tires for Apollo, an Apollo Tyres official said. With the acquisition of a Modi Rubber plant, Apollo Tyres would have operations in the north of the country adding to its factories in the southern state of Kerala and the western Indian state of Gujarat. Both Apollo Tyres and Modi Rubber have Continental A.G. as their technical collaborator. However, a senior official in Modi Rubber said it won't be easy for the deal to go through so soon as there is a dispute between the owners of Modi Rubber and the financial institutions on the ownership of the company, as both hold 44-percent stakes in the company. Apollo Tyres also is interested in buying majority equity in tire manufacturing units in developing countries like Africa and Indonesia, the official said.
Apollo Tyres may buy a Modi Rubber tire plant
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