Cooper Tire and Rubber Company will not be joining forces with India's Apollo Tyres the company said in a press release on its website Monday.
"It is time to move our business forward," Roy Armes, chief executive at Cooper Tires said in a statement.
Cooper Tires did not have any money to fund the project, and felt Apollo violated the guidelines of the contract USA Today reported.
"Addressing the situation at Cooper Chengshan Tire (CCT) in Rongcheng, China is our top priority in the near term," Ames said in the statement. "The issues at CCT were driven by the merger agreement, and with the agreement now terminated, Cooper is working independently to restore normal operations at CCT, including obtaining the information needed for Cooper to resume regular financial reporting as soon as possible," Ames said in the statement. "Once the situation at CCT is resolved and regular financial reporting has resumed, Cooper will be in a position to address additional options for the deployment of capital targeted at returning value for our stockholders."
Apollo was set to buy Cooper for $2.5 billion or $35 per share in June The New York Times' Dealbook reported. The merger was also considered to be the seventh biggest across the globe.
"While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available," Ames said in the statement. "The right thing for Cooper now is to focus on continuing to build our business. "While Cooper believes Apollo has breached the merger agreement, and we will continue to pursue the legal steps necessary to protect the interests of our company and our stockholders, our focus will be squarely on our business and moving it forward."
Cooper makes Cooper, Mastercraft, Starfire, Chengshan, Roadmaster, and Avon tires The Dealbook reported.
