PARIS (July 20, 2009)—Michelin said it intends to buy the shares in its Chinese joint venture, Shanghai Michelin Warrior Tire Co. Ltd. that it currently does not own.
Chinese tire maker Double Coin Holdings Ltd. said it will sell its 28.5 percent stake in the joint venture, while Shanghai Minhang United Development Co. Ltd. will offer its 1.5 percent share at the same time.
Michelin owns the remaining 70 percent.
Double Coin and Michelin will continue to collaborate, and both companies said they consider this move to be the best approach to ensure Shanghai Michelin Warrior's sustainable growth.
Shanghai Michelin Warrior operates one plant in Shanghai, China, that produces radial passenger and light truck tires for both the Michelin and Warrior brands.
Double Coin said it believes the transaction is in the best interest of Shanghai Michelin Warrior's shareholders.