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Doublestar completes acquisition of Kumho Tire

All Headlines 14:22 July 06, 2018

SEOUL, July 6 (Yonhap) -- Qingdao Doublestar Co. has completed its acquisition of Kumho Tire Co. by making the payment for the controlling stake in South Korea's second-biggest tiremaker to its creditor bank, the Chinese tiremaker said Friday.

Doublestar wrapped up the deal to acquire a 45 percent stake in the Korean tiremaker for 646.3 billion won (US$578 million) from state-run Korea Development Bank, Doublestar said in a statement released through its public relations agency in Seoul.

"By acquiring Kumho Tire, Doublestar aims to seek co-prosperity and to become a global top-10 tiremaker through close cooperation. Kumho Tire will focus on mid and high-end tires for passenger vehicles, and Doublestar will focus on mid and low-end tires for trucks and buses," Doublestar Chairman Chai Yongsen told reporters in Seoul in March.

Kumho Tire will operate as an independent business entity in South Korea, as Doublestar has no intention of controlling or intervening in the making of major decisions at the tiremaker, he said.

Kumho Tire has eight plants -- three in South Korea, three in China, one in Vietnam and one in the United States -- with a combined production capacity of 54.64 million tires.

Doublestar Chairman Chai Yongsen delivers a speech before signing a final contract with the Korea Development Bank to acquire Kumho Tire in Seoul on July 6, 2018. (Yonhap)

kyongae.choi@yna.co.kr
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