JK Tyre set to buy unit of Birla Tyres for an enterprise valuation of Rs. 2,000-2,200 crore.

India's third-largest tyre maker JK Tyre & Industries is set to buy the Uttarakhand tyre unit of BK Birla flagship Kesoram Industries for an enterprise valuation of Rs. 2,000-2,200 crore. A deal would take the company's share of the Indian market to about a fifth from approximately 16% now, bringing JK Tyre on par with No. 2 Apollo Tyres.

A formal announcement is expected in the next one week. Both sides are engaged in last-minute discussions, said multiple sources aware of ongoing negotiations. ET was the first to report, on July 6, that JK Tyre had emerged the frontrunner to buy the unit after Kesoram's negotiations with a number of global and Indian strategic players such as MRF and Apollo weren't fruitful.

ET