MOSCOW (Nov. 30, 2011)—Russian authorities have granted Sibur–Russian Tyres OJSC permission to acquire all the shares in joint-stock company Kordiant-East, previously known as J.S.C. Matador-Omskshina, originally founded by Continental A.G.'s Matador A.S. subsidiary.
Puchov, Slovak Republic-based Matador established the 50-50 joint venture with Omskshina in 1995. Conti took over the share ownership in its acquisition of Matador in 2007, but indicated in June this year its intention to divest the stake. Conti meanwhile has broken ground on its own factory in Russia, in Kaluga south of Moscow.
Special permission was needed for the transaction, Sibur-Russian said, because the factory uses special X-ray machines to monitor the quality of bus tires.
Financial terms of the deal were not disclosed. The venture reported sales of $63 million in 2009, the last year for which full year financial data are available.
Acquiring full control of the Omsk-based venture will allow Sibur-Russian Tyres to meet the growing demand for car tires in Russia, according to a translation of the company's Russian-language statement.
Sibur-Russian Tyres, which is ceding control of other manufacturing assets in Russia to Pirelli Tyre S.p.A. under a wide-reaching agreement with Pirelli and Russian Technologies State Corp., said the Omsk plant produced 2.75 million tires last year in the Cordiant and Matador brands.
Omsk is the administrative center of Russia's Omsk Oblast region, in southwestern Siberia.