Qingdao Doublestar Co. Ltd. is accelerating plans to become a top-tier global tyre manufacturer with a RMB 4.93 billion (£509 million) transaction that will hand it consolidated control of 45 per cent of South Korea’s Kumho Tire. The share-and-cash deal, finalised in late-October 2024, is the largest outbound M&A move ever undertaken by a Chinese tyre company and reshapes competitive dynamics across Asia, Europe and North America.
The acquisition is structured as a private placement of Doublestar shares to no more than 35 investors, supplemented by up to RMB 800 million in cash. Doublestar’s parent, Doublestar Group, is injecting capital and transferring equity from existing vehicles—including Xingtou Fund and Xingwei International—so that operational control sits squarely with the listed Qingdao Doublestar entity.
Once Kumho’s results are fully consolidated, Doublestar’s annual turnover is projected to exceed RMB 10 billion. Kumho alone is targeting KRW 4.56 trillion (about RMB 24.5 billion) in 2024 sales, giving the merged group a stronger footing among the world’s top tyre producers.
By bringing Kumho under direct control, Doublestar aims to eliminate overlapping product lines and market channels—particularly in original equipment (OE) and replacement segments—reducing intra-group competition and improving capital allocation.
Kumho’s established R&D centres in South Korea, China, Europe and the US complement Doublestar’s manufacturing presence, providing faster technology transfer for electric-vehicle tyres, smart-tyre sensors and sustainable materials.
Tagged with: Doublestar, Kumho Tire, tyre M&A, Chinese tyre industry, global tyre market, strategic acquisition, EV tyre growth
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
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