Apollo: Despite Strike Reports, Cooper Chengshan is on Track

Following news of industrial opposition to the ongoing Apollo/Cooper takeover and even strikes at Cooper Chengshan in China, company representatives have broadly confirmed that there has been disquiet. 

However, while the local news coverage suggests this has been the case for nearly a month, Apollo representatives did not confirm this detail and report that the deal is very much on-track and indeed entering the end-game of what they referred to as a “compelling strategic transaction.”

According to an Apollo spokesperson, “The transaction is on schedule to close. Cooper and Apollo Tyres are committed to working through the final stages of closing this compelling strategic transaction.”

Interestingly, and perhaps indicating how Apollo proposes to deal with inter-cultural differences in the post merger company, the spokesperson suggested that Cooper staff would be working hard to resolve any issues: “Apollo recognizes that Cooper is working to resolve any issues with Cooper's facility in Rongcheng, China.”

This is significant because the union leaders behind the strike action suggested that, following the Chinese company’s adaptation to U.S. working practices in conjunction with Cooper, a further conversion to “Indian” approaches would be a step too far. However, if this is not reading too much into the statement, it appears that Apollo is upholding the authority (let’s remember that Apollo is not actually the owner of Cooper until the transaction formally completes) and the relational structures already in place.