cooper tire breakup caps bad year for emerging market deals - chinese appliance manufacturers
2019-07-12
cooper tire breakup caps bad year for emerging market deals  -  chinese appliance manufacturers
NEW YORK (TheStreet)--
Talk about getting it wrong. When U. S.
Cooper Tire and Rubber tire manufacturers (CTB -Get Report)
Apollo tire, India, announced the acquisition of the company for $2.
5 billion, TheStreet analyzed the deal and said that as emerging market consumers enter the car market, it could herald the development of the global automotive industry.
After about half a year, the merger is over. The failed tie-
Between two tires.
Manufacturers may cool appetite in the United States. S.
Sell their companies to emerging market buyers and vice versa.
Already, for mergers and acquisitions between the United States, this is a chaotic year. S.
Emerging market companies. In May, AIG (AIG -Get Report)
I was shocked when it found that an investor group led by the New China Trust could not pay a 10% down payment for $5.
28 billion acquisition of a majority stake in the international leasing finance company of the insurance company's aviation finance department.
The deal eventually broke down and AIG spent most of the second half of 2013 fighting for new buyers for ILFC.
Earlier in December, AerCap Holdings (AER)
The Netherlands agreed to buy ILFC from AIG for $5.
4 billion, the deal could help AIG to receive a meaningful dividend in 2014.
Nevertheless, few things are more reflective of the management team than the failed merge.
Smithfield Food has become almost another warning story in the United States. S. -to-
Business activities in emerging markets
Shortly after the announcement of $7.
China Shuanghui International Holdings Ltd will acquire 1 billion transactionsS.
Lawmakers are hesitant about the draw.
Citing national security issues
It is worth noting that Smithfield Foods is known for its manufacturers of pork and beef products, and Minghui is one of the largest pork processors in China.
The aggressive hedge fund, Starboard Value, also rejected the deal, but offered to break up with the food giant.
Finally, a foreign investment committee in the United StatesS.
The review approved Shaunghui's acquisition of Smithfield, which is also a shareholder of the company.
The union employee contract is an area in which Smithfield's successful transaction with Shuanghui and Cooper/Apollo failed.
While Shuanghui was able to provide the status quo for Smithfield's union workers, Cooper's deal with Apollo Tires was damaged by labor disputes in China and the United States. S.
At May, one of Smithfield workers's largest union delegates, the United International Union of Food and Commercial Workers, supports the company's plan to be acquired by Shaohui, and negative publicity of the transaction may be blocked.
"UFCW is pleased that the workers in our community can benefit from the growth and expansion of the US economyS.
"The pork industry," the union said.
In contrast, the worker dispute and the seemingly tense financial situation of Apollo Tires have damaged any deal with Cooper tires.
Future lawsuits are now the only part of the deal that may be left, and this will be one of the biggest acquisitions in the USS.
A company of Indian companies
After the announcement of the agreement with Apollo, the workers of Cooper Chengshan Tire Company (CCT)
A Chinese joint venture went out to protest a possible cultural clash with its new owners.
Apollo Tires are also facing huge U. S. hurdles. S.
A Delaware judge has ruled that the Indian tire maker will negotiate a new contract with the U. S. steel workers' union.
Due to these adverse factors, Apollo Tyre asked Cooper to lower the price in the acquisition, Findlay, Ohio --
American-based companies are reluctant to give in.
Meanwhile, Apollo tire's Indian shareholders have been opposing the deal since the first day of the deal, suggesting that some people either think the acquisition is diluted or think the company is putting finance in $2.
5 billion acquisition.
"While the strategic rationale for a business merger with Apollo is compelling, it is clear that Apollo will not complete the merger agreement between the two companies signed in June 12, and we have been told that transaction financing is no longer available.
Roy alms, CEO of Cooper Tire, said in a statement on Monday: "Cooper's right now is to focus on continuing to grow our business . ".
All the deals were chaotic.
Cooper Tire shares fell less than 1% in trading on Monday afternoon.
Shares of the company have fallen more than 10%-to-
Compared with the first offer of $35 per share for Apollo Tires, the price is about 35%.
The question is whether Apollo Tire's efforts to acquire Cooper Tire failed, and whether New China Trust's similar failed deal with AIG will cool the United States. S.
Emerging market companies.
Chaos in America this yearS.
At the same time, some regulators have also planted seeds for possible trading activities in the next few years.
On 2012, the Federal Reserve approved the state of China.
Sponsorship of bank giant charter flights in the United StatesS.
Some expect that this development may eventually lead to an increasingly close relationship between the United States and the United States. S.
And Chinese lenders
Private equity giant KKR & Co.
Meanwhile, spending heavily in Qingdao's Qingdao investment could help Chinese home appliance manufacturers expand in the United States. S. --
Written by Antoine Gara in New York, follow @ antoinegara/ Month ; if(! d. getElementById(id)){js=d. createElement(s); js. id=id; js. Src = "/platform. twitter. com/widgets. js"; fjs. parentNode. insertBefore(js,fjs); }}(
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