Enschede, Netherlands--Vredestein NV has confirmed that it is in detailed discussions about selling its tyre unit to Russian tyre maker, Amtel. Rob Oudshoorn chief executive of the Dutch company confirmed to ERJ that talks are going well and he expects the sale to go through by the beginning of 2005.
Amtel said in a statement, "The transaction, anticipated to close by February 2005, will involve the purchase by Amtel Holdings Holland N.V., the parent company of Amtel, of Vredestein Investment Consortium (VICO) N.V.'s interest in Vredestein Banden, including all of its operating subsidiaries engaged in the production, distribution and sales of tires and off-take arrangements, as well as Vredestein Banden's trademarks, patents and other intellectual property."
Assuming the deal goes through, said Oudshoorn, Amtel would have access both to Vredestein's distribution channels in Europe and North America and to Vredestein's tyre building technology, as well as the brand name and equipment at the Enschede plant.
The deal is also expected to cover the Vredestein Banden subsidiary, Vredestein Consulting, which offers advice on tyre design and manufacture on a contract basis.
Oudshoorn said Amtel is keen to improve its sales position in the Russian high performance and premium sector, where imported tyres dominate. The company therefore wants an import brand name to sell in Russia. In addition, the company has recently been investing heavily in modern tyre building equipment and therefore has the capability to make tyres that meet the expectations of customers in Europe, America and Canada, said Oudshoorn.
In the short term, said Oudshoorn, it is business as usual at Vredestein.
The picture shows Amtel president Sudhir Gupta briefing Russian press on the deal at Amtel's Moscow headquarters, 3 Nov 2004.