Doublestar Group announced that it has completed an agreement with South Korea’s Korea Development Bank (KDB) to acquire a 45% stake in Kumho Tire for RMB 3.9 billion ($500M). By this, Doublestar becomes Kumho Tire’s controlling shareholder, while KDB and other Kumho creditors will remain the second largest shareholder with a 23% stake.
Kumho Tire is the second largest tire company in South Korea and has eight factories and five research and development centers around the world. Its tires are known for “fashion”, “sports” and “fuel economy”, and are used by leading car makers in the world.
According to Doublestar Chairman Chai Yongsen, “Kumho Tire’s strengths are in PCR (passenger car radial) tires while Doublestar’s strengths are in TBR (truck and bus radial) tires. I believe that the synergy and integration of our two companies will produce a multiplier effect. Through products, technology, manufacturing and services that represent the future of the global tire industry, we will become one of the world’s greatest tire companies.