While MRF and Apollo slug it out in the market to woo customers for their tyres, the competition certainly doesn’t end there. MRF and Apollo are competing to acquire the BLK Birla group’s Kesoram Industries and regardless of guessing there is a bidding war ensuing up.
It is reported that the value of Kesoram’s plant in Uttar khand is already high and the bidding war might just further send the value soaring high. MRF was the lead bidder for acquiring this plant, but it is expected that Apollo might outbid them.
This facility holds significance for both MRF and Apollo as they will have manufacturing presence in north India and get a strong grip on the commercial vehicles tyre space.
This week, the promoters of Apollo and Kesoram would be meeting to further discuss the prospects. After which Kesoram’s top notch guys will meet the consortium of lenders to seek their approval to make it a subsidiary.
Rumours also indicate that MRF and Kesoram has called for a board meeting on February 12 to announce quarterly financial numbers. If this happens to be true then it is cited that MRF might end up acquiring Kesoram’s unit unless Apollo makes an irresistible counter offer.