PARIS (Feb. 3, 2010)—Michelin has completed its previously announced acquisition of full control of Shanghai Michelin Warrior Tire Co. Ltd.
The company paid about $25 million for the 28.5-percent stake in the venture owned by Chinese tire maker Double Coin Holdings Ltd., and 1.5-percent interest held by Shanghai Minhang United Development Co. Ltd.
Michelin bought into the venture—a passenger and light truck tire producer in Shanghai—in 2001, and announced in July its intention to buy out its partners.
All of the parties said they agreed the transaction is in their best interests and beneficial to the sustainable growth of the venture and the Warrior brand.
Double Coin, the owner of the Warrior trademark, will continue to grant Michelin the exclusive right to use the mark for its passenger car and light truck tire businesses for two years, Michelin said.
At the end of this two-year period, the license will be terminated, and Double Coin Group will have all rights to use the Warrior trademark itself and/or to decide on its own to license it for use by others, Michelin said.