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One of the Chinese tyre majors Qingdao Doublestar has announced that it is buying a majority stake in the South Korean tyre maker Kumho Tire. The company has reached an agreement with the creditors of Kumho Tire recently after long talks. The purchase is expected to get finalized by the third quarter of 2018. After this purchase, the creditors of Kumho Tire will own a 23 percent stake in the company while Doublestar will own a majority 45 percent stake.
According to Doublestar, the company is planning to invest about $ 630 million (4 billion yuan) in Kumho Tire after the deal. Earlier in 2017, a deal was not materialized between the two companies that would have given Doublestar a 42.01 percent stake in Kumho.
Based in South Korea, Kumho Tire is among the top tyre makers in the country. It has eight manufacturing plants around the world; three each in South Korea and China and one each in the US and Vietnam. It is among the sponsors of La Liga football league.
Listed on Shenzhen Stock Exchange, Qingdao Doublestar produces and sells tyres in China as well as in the international market. The company is also into the manufacturing high-quality smart devices.
