Stockholm – Michelin has completed a previously announced acquisition bid to buy 20% of the shares of Scandinavian Enviro Systems AB to become the Swedish tire pyrolysis company's largest shareholder.
The investment was made through the private placement of a total of 116,165,223 Enviro shares at a subscription price of SEK0.28 per share, said the Swedish company in a 30 April statement.
The share issue generated proceeds of approximately SEK32.5 million (€3 million) before transaction costs.
The move is part of a long-term strategic partnership between the French tire maker and the recovered carbon black (rCB) supplier.
The partnership includes a joint supply agreement between the two companies and will look to scale up Enviro’s pyrolysis technology through a “jointly owned” tire recycling plant.
Enviro has developed a process using its "proprietary technology" to recover oil, steel and carbon black from end-of-life tires.
A final agreement for a strategic partnership is expected to be completed by mid-2020.