Continental Tires Acquire ERCO
Continental Tires North America is set to acquire a larger market share in Latin America with the reported acquisition of Compania Ecuatoriana del Caucho S.A.(ERCO). What makes Continental in a better position with this deal is that ERCO has a strong distribution network in Ecuador and the Andean region.
“Our plan is to have ERCO manage the six countries of the Andean region so that we can expand our business in these critical growth markets which, together, have a larger population size than that of Mexico, but with faster growth.”
Over the last two years, Continental Tire has significantly increased its market share in Latin America by a focused growth strategy. The opening of a Sales office in Argentina in summer 2008 accelerated the growth even further. Continental Tire manages its Latin American operations with the exception of Mexico and the Andean Region out of its significant operations in Sao Paulo, Brazil.
(Source) Press
Tags: acquisition, american operations, andean region, argentina, caucho, continental tire, continental tires, distribution network, ecuador, erco, growth markets, growth strategy, latin america, market share, Mexico, north america, population size, sao paulo brazil