Quick Take: Qingdao Doublestar Buys 42% of Kumho for $827 million

Leading Chinese tire maker Qingdao Doublestar Co. Ltd. has agreed to buy 42% of South Korean rival Kumho Tire Co. Inc. for 955 billion won ($827 million).

A subsidiary of the Chinese company on Monday signed a share purchase agreement with nine creditors of Kumho Tire, including Woori Bank and Korea Development Bank.

Qingdao Doublestar will become the South Korean tire giant’s largest shareholder if Kumho’s parent company, Kumho Asiana Group, doesn’t buy the shares back within 30 days, according to the agreement.

Since the creditors of Kumho Tire announced sales of the shares in September, several well-known companies, such as French tire maker Michelin Group, China National Chemical Corp. and German automotive manufacturer Continental AG have reportedly shown interest for the deal.

Contact reporter Coco Feng ([email protected])