Cooper Tire & Rubber Co. is calling off its sale to India’s Apollo Tyres, unraveling a $2.2 billion deal announced just over six months ago.
Cooper said financing is no longer available and it continues to claim, as it has for months, that Apollo breached the terms of the agreement.
Apollo threatened for the first time Monday to pursue legal remedies after the announcement, which it called disappointing.
Both companies agreed to the sale in June, but things deteriorated rapidly. Negotiations with the union representing Cooper employees became a sticking point.
Apollo sought a better price, citing labor issues in China and weaker profit, which Cooper said was a stalling tactic. The Findlay, Ohio, company took its claim to a Delaware court, but a ruling last month found no breach of obligations on Apollo’s part.