German firm Continental to buy Modi Tyre Company

German tyre major Continental on Monday announced it will acquire Modi Tyre Company Ltd for an undisclosed amount.

"The international automotive supplier and the world's fourth-largest tyre manufacturer has signed an agreement with Modi Rubber Ltd (MRL), for the acquisition of a 100 per cent shareholding in Modi Tyres Company Ltd (MTCL), a subsidiary of MRL," Continental said in a statement.

"After completion of the transaction, MTCL will become a fully-owned subsidiary of Continental Corporation," the statement added.

The completion of the transaction, however, depends on the fulfilment of several conditions, it added without giving further details.

Post the acquisition, the company will focus on domestic market with local production and distribution of bias and radial tyres for trucks and buses, besides radial passenger car tyres for the Indian market.

"This development underlines Continental's commitment to the Indian market and is part of the company's strategy to invest in growing markets in Asia for its core businesses," the company said.

Continental, which is present in 46 countries with about 1.5 lakh employees, clocked a sales of 26 billion euros in 2010.