ENSCHEDE, Netherlands (Nov. 4)—Vredestein N.V. confirmed it is in detailed discussions about selling its tire unit to Russian tire maker Amtel Holdings.
Rob Oudshoorn chief executive of the Dutch company said talks are going well and he expects the sale to be completed by the beginning of 2005.
In a statement, Amtel said the transaction will involve buying Vredestein Investment Consortium N.V.'s interest in Vredestein Banden, including all operating subsidiaries engaged in the production, distribution and sales of tires and off-take arrangements, as well as Vredestein Banden's trademarks, patents and other intellectual property.
Assuming the deal goes through, Oudshoorn said Amtel would have access to Vredestein's distribution channels in Europe and North America, its tire building technology and brand name and equipment at the Enschede plant.
The deal also is expected to cover the Vredestein Banden subsidiary, Vredestein Consulting, which offers advice on tire design and manufacture on a contract basis. Amtel would carry out the deal through its Amtel Holdings Holland N.V. unit.