On March 26, Qingdao Double Star received official registration approval from the China Securities Regulatory Commission for its restructuring and acquisition of Kumho Tire, marking a landmark case as the first listed Chinese tire company to acquire a listed overseas tire company.
Under the plan, Qingdao Double Star will acquire a 45% controlling stake in Kumho Tire through share issuance and cash payment. It has also been approved to raise up to RMB 800 million in supporting funds and has established a RMB 3.5 billion industrial investment platform to support post-merger integration and global development.
Kumho Tire operates 9 production bases and 5 R&D centers worldwide, serving as a key supplier to international automakers including Mercedes-Benz, BMW, Volkswagen, and Audi. It maintains globally leading technologies in high-end passenger tires, low-rolling-resistance tires, and smart tires, with steady performance growth in recent years.
Qingdao Double Star excels in truck & bus tires and intelligent manufacturing, while Kumho Tire has strong advantages in passenger car tires, global branding, and international sales channels. The restructuring will drive deep synergy in products, technology, capacity, and global markets, strengthen China’s tire industry in high-end OEM supply, and help build a more comprehensive global competitive advantage. It also provides valuable experience for Chinese enterprises pursuing cross-border M&A and professional integration via capital markets.
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