Continental AG to buy into Sime tyre unit


KUALA LUMPUR, Feb 26 (Reuters) - Germany's Continental AG , the world's fourth-largest tyre maker, will buy a 30 percent stake in the tyre unit of Malaysia's Sime Darby Bhd for $31 million, the companies said in a statement.

Continental also has the option of buying another 21 percent in Sime's SDC Tyre Sdn Bhd by 2005, giving it control of the Malaysian unit and access to the Southeast Asian market, said the statement released before the signing of the deal on Wednesday.

"Together with our partner, we now have a solid production and sales basis which will make the ASEAN and Australian markets accessible to us, and considerably increase our market share," Continental chairman Manfred Wennemer was quoted as saying.



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