Continental to buy Modi Rubber’s tyre unit

German tyre maker Continental AG has signed an agreement to buy the tyre unit of Modi Rubber Ltd,Continental said on Monday. It did not disclose financial details,and said the completion of the deal to acquire Modi Tyres Co Ltd depends on the fulfillment of several conditions. Shares in Modi Rubber shot up 10 per cent,its daily limit,to Rs 75.35 on the Bombay Stock Exchange. Continental,the world’s fourth largest tyre maker with reported sales of 26 billion euros ($37.5 billion) in 2010,said Modi Tyres would become a fully owned subsidiary and would focus on local production and distribution of radial truck and bus tyres as well as radial car tyres. This development underlines Continental’s commitment to the Indian market and is part of the company’s strategy to invest in growing markets in Asia for its core businesses,it said in a statement.