Cooper Tire & Rubber Co. has filed a complaint in the Delaware Chancery Court to goad Apollo Tyres to close its $2.5-billion acquisition of the company in a timely manner. Copper said that Apollo was delaying settling issues with some workers from the United Steel Workers (USW) union, who have asked that the new agreements be drafted between them and the Apollo before closing the deal.
India-based Apollo expressed disappointment over Copper’s filing and said that it is working to complete the deal as “expeditiously as possible.” Apollo said in an e-mailed statement to Bloomberg that the litigation simply has no basis. Apollo is acquiring Cooper to create the seventh-largest tire company in the world.
Apollo is seeking to secure a base in China and the United States by taking over Cooper – a deal that has met opposition from workers at Cooper Chengshan Tire Co -- Cooper's joint venture in China -- and has been interrupted by USW demands.
Apollo said that they have been working diligently to “assist Cooper in resolving its outstanding issues” with the USW, adding that they look forward to completing the acquisition once they reach an agreement with the union and complete the marketing of their financing.
The Indian tire company remarked that it was also supporting Cooper in reaching a resolution in its "financially damaging dispute" with its joint venture partner in China. Workers at Cooper Chengshan have been striking against the agreement while the tiremaker’s local partner has filed a lawsuit seeking to dissolve the deal.