ENSCHEDE, Netherlands (Feb. 1, 2008) — Russian tire maker Amtel-Vredestein N.V. and Russian petrochemical conglomerate Sibur Holding Joint Stock Co. are involved in "preliminary discussions" regarding a possible business combination involving Sibur's tire holdings, Sibur-Russian Tyres.
As a result of such a business combination, Sibur may become one of the principal shareholders in the combined business through the issue of new equity, according to a statement by Amtel-Vredestein, the joint Dutch-Russian venture formed in 2004.
There is, however, no intention by Sibur or by any of the parties involved to make an offer to acquire Amtel-Vredestein's existing share capital under the structure being discussed, Amtel-Vredestein said.
The company stressed the discussions are at a preliminary stage, and "there can be no certainty at this stage that the proposed business combination will be completed."
Amtel-Vredestein and Sibur-Russian Tyres are considered the world's No. 20 and 22 tire makers, with 2006 annual sales of $750 million and $698 million, respectively.