Monday, July 7, 2008

Amtel-Vredestein Tires

Sibur Russian Tyres has purchased a 70% stake of Amtel-Vredestein for about $370 million.

Amtel-Vredestein, a Dutch manufacturer of bicycle and auto tires, had been struggling to turn a profit and to retain market share over the past few years. Sibur's Russian Tyres controls a little over 30% of the Russian tire market and by acquiring Amtel-Vredestein will become one of the top ten tire manufacturers world wide.

Given that Russia currently is, population-wise, 9th in the world and that Russia has seen considerable economic growth over the past decade, Sibur's acquisition of Vredestein should work out well.

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