China National Tire & Rubber Co. has “entrusted” a 52 percent ownership stake in Prometeon Tyre Group to Aeolus Tyre Co. Ltd., CNRC.
Aeolus to hold 62 per cent of Prometeon
Aeolus Tyre Co., Ltd. and its controlling shareholder, China National Tire & Rubber Co., Ltd. (CNRC, which is itself owned by Chinese petrochemical giant ChemChina) entered into a Shares Entrustment Agreement recently.
According to the Shares Entrustment Agreement, CNRC entrusts 52 per cent of shares in Prometeon Tyre Group S.r.l., which are indirectly held by CNRC, to Aeolus.
The term of the entrustment is three years, which shall be automatically renewed upon expiration.
Aeolus currently holds 10 per cent shares of PTG. The execution of this Share Entrustment Agreement, in addition to the purpose of solving the horizontal competition issue, is conductive to further exert synergies for both parties and enhance their abilities to continuously create value for their shareholders.
In the future, Aeolus and PTG will actively leverage the advantages of both parties, comprehensively improve technological innovation and advanced manufacturing capabilities, and provide customers with more and better quality products.
Aeolus and PTG will jointly promote channel synergy in market segments to provide customers with more convenience and value Services. They will jointly optimise process in procurement, supply chain and other areas, to establish closer cooperative relations with business partners such as suppliers.
With estimated sales of $625 million in 2019, Prometeon is considered the world’s 35th largest tyre maker. Aeolus is slightly larger, with fiscal 2019 sales of $859 million.