Apollo Tyres on Saturday declared that a US court has given a favourable ruling in its dispute with Cooper Tire & Rubber Company over their proposed $2.5 billion merger. Commenting on the court's ruling, Apollo Tyre said that they are committed towards finding a sensible way to complete the merger.
In a statement Apollo Tyre said, “We are pleased that the Delaware Court has found that Apollo is not in breach of its merger agreement with Cooper Tire. Furthermore, the Court found that Apollo has used reasonable best efforts to negotiate with the United Steelworkers (USW) and that, contrary to Cooper's claims, nothing in Apollo's conduct indicates buyer's remorse. Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward.”
Cooper on its part expressed disappointment with the ruling, and said in a statement that it was “disappointed with the decision of the Delaware Chancery Court that Apollo did not breach its obligation to expeditiously reach an agreement with the United Steelworkers per the terms of the merger agreement.”. The statement further added that Cooper is now assessing its options with respect to the decision and awaits the court's ruling on other open matters in this case. Earlier in October, Cooper had filed a complaint in Delaware Court of Chancery to push for completion of their merger. International tyre manufacturer had also blamed Apollo Tyre for wanting to delay the agreement between Cooper tire with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.