AKRON, Ohio — Michelin has decided to buy a 10 percent stake in PT Gajah Tunggal (GT), a tire manufacturer and distributor located in Southeast Asia.
Michelin has an agreement with GT to produce and distribute passenger and light truck tires in Southeastern Asia under Michelin brands, including BFGoodrich, for the replacement market, according to GT. “To strengthen the deal, Michelin has bought 10 percent of the company’s shares,” said GT in a statement to the Jakarta Stock Exchange in Indonesia.
GT, which has produced at least 95.8 million tires since 1993 and ranks 23rd among the world’s top tire producers (according to Indonesian newspaper The Jakarta Post) did not disclose the value of the deal. However, analysts speculate it may be worth approximately $67 million.
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