Apollo Tyres Spending Spree I must admit as an Apollo tyre retailer, this one came out of the blue?
With the recent acquisition of the German tyre retailer “Reifencom”. Hence, this is just a part of the mad rush for the cash strapped tyre manufacturers.Hence, to expand their empires.
The agreed price is said to around 45 million Euros. Although, I have never heard of the German tyre company. So they are said to have grown to one of the largest tyre retailers. Thus, with an online presence. Reifencom have 37 retail outlets and also sell tyre products online. Naturally, in Germany and other parts of Europe. Including France, Italy, Austria, Switzerland and Denmark.
The Apollo Tyres Spending Spree has not yet hit the UK tyre market, but with tyre retailers the likes of “National”, up for grabs, then who knows?
The nearest we have been was the acquisition of Vredestein tyres in Holland. Vredestein have a very strong presence here in the UK and so I think it is a case of watch this space?
Neeraj Kanwar, is the MD of Apollo tyres and said,” The acquisition is a strategic fit in further growing our European business”, “It will enable Apollo to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tires in the offline and especially the fast growing online retail space.”
All of this follows in the steps of Michelin tyres who have now acquired online tyre businesses in Germany, France and the UK.
Tyre manufacturer’s boardrooms must be buzzing with conversations about what will be happening next. My money will be on Bridgestone?
Bridgestone are the world’s largest tyre manufacturers are will not want to be left behind. The large Micheldever tyre operation is up for grabs? Now bought by Sumitomo tyres. Who knows.