HANOVER, Germany (July 18, 2011)—Continental A.G. has completed its acquisition of India's Modi Tyres Co. Ltd., a subsidiary of Modi Rubber Ltd., for about $25 million.
Both parties have agreed to keep other commercial details of the transaction confidential.
Modi Tyres has now become a fully owned subsidiary of Continental and will be renamed Continental Tyres India Ltd. The new entity will focus on local production and distribution of bias and radial truck and bus tires as well as radial passenger car tires for the Indian market.
Continental Tyres India Ltd. will have its registered office in Delhi with manufacturing facilities in Modipuram and Partapur. An integration team is working with the new employees on achieving an optimal start for Continental Tyres India, with the full set of resources now available from Continental.
Modi Rubber Ltd. has informed Indian stock exchange authorities that the sale of its entire shareholding in Modi Tyres—represented by 56 million equity shares—closed on July 15.