Michelin CGDEB (EU:ML)
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1 Year : From Nov 2018 to Nov 2019
By Nathan Allen
Compagnie Generale des Etablissements Michelin (ML.FR) said Tuesday that it will pay $439 million for an 80% stake in Indonesian tire manufacturer Multistrada Arah Sarana (MASA.JK).
As part of the deal Michelin will also acquire a 20% stake in the retailer PT Penta Artha Impressi, boosting the French group's access to the Indonesian market.
Potential annual synergies from the deal should reach $70 million within three years of closing, Michelin said.
Multistrada generated net sales of $281 million in 2017, according to Michelin.
Following the closing of the deal, Michelin said it would launch a public offer for the outstanding shares in Multistrada at the same price.
Michelin will fund the acquisition through internal resources and it shouldn't have any impact on the company's credit rating.
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(END) Dow Jones Newswires
January 22, 2019 12:16 ET (17:16 GMT)
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