Conti buys out tyre distributor in Turkey

ERJ staff report (DS)

Hanover, Germany -- Continental AG has acquired 89.66 percent of the shares in Oltas SPA headquartered in Istanbul, from Koç Holding and other Koç Group shareholders. The deal is subject to approval from Turkish anti-trust authorities.

Oltas is Continental's exclusive tyre distributor for the passenger car and commercial vehicle tyre brands Continental, Uniroyal and Barum in Turkey. "With this acquisition, we are significantly improving our market position for commercial vehicle and passenger car tyres in Turkey and thus in the growth region Eastern Europe overall," said Dr. Alan Hippe, Executive Board member responsible for the Passenger Car Tire division. Hippe continued, "Following the majority shareholding in the Slovakian Continental Matador Rubber and the acquisition of the Finnish specialist for spikes Tikka, this transaction also demonstrates that, in both the Passenger Car and Commercial Vehicle Tire division, we are constantly on the lookout for meaningful additions to our portfolio and want to continue growing."

Turkey is one of the biggest markets for commercial vehicle tyres in Europe. Oltas SPA achieved sales of some 39 million euros in 2007 with a workforce of approximately 65. Today, it has a franchise dealer network with more than 200 shops that is to be expanded even further. Approval from the Turkish antitrust authorities has yet to be granted, and further approvals from the European authorities are not required in the case of this majority holding.

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Press release from Conti