New Delhi: German tyre major Continental announced on Monday it will acquire Modi Tyre Company Limited for an undisclosed amount.

"The international automotive supplier and the world's fourth largest tyre manufacturer Continental has signed an agreement with Modi Rubber Ltd (MRL), for the acquisition of a 100 percent shareholding in Modi Tyres Company Ltd (MTCL), a subsidiary of MRL," the company said in a statement.

"After completion of the transaction, MTCL will become a fully owned subsidiary of Continental Corporation," the statement added.

The completion of the transaction, however, depends on the fulfillment of several conditions, it added without giving further details.

Post acquisition, the company will focus on domestic market with local production and distribution of bias and radial tyres for trucks and buses, besides radial passenger car tyres for the Indian market.

"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," the company said.

Continental, which has presence in 46 countries with about 1.5 lakh employees, clocked sales of 26 billion Euro in 2010.

(Agencies)