Indonesian tire manufacturer Multistrada Arah Sarana will be acquired by French rival Michelin for about $439 million to boost production in Southeast Asia.
Under the deal, Michelin will buy 80 percent of PT Multistrada Arah Sarana TBK funded through internal financial resources.
With the move, Michelin will boost its footholds in the Indonesian market as it gradually converts production from Tier 3 passenger car tyres to Tier 2 Michelin Group brands, thereby supporting the growing demand of Tier 2 volumes in Europe, North America and Asia.
Furthermore, Michelin will also acquire a 20 percent stake in retailer PT Penta Artha Impressi in partnership with Indomobil to boost the marketing and sales of its brands in Indonesia.