Today, the sale of Modi Rubber’s subsidiary Modi Tyres to Continental Group has been concluded for an amount of 117.61 crore. The news of it sales flashed on TV sets on Friday when India's Modi Rubber told that German tyre maker Continental AG has paid 1.34 billion rupees to buy its tyre making unit.

The company has said that the total amount that Continental paid to buy 5.6 million shares in Modi Tyres Company includes a non-compete fee of 172.3 million rupees.

Although, the deal has finalized today, it was first announced by the two companies in the month of April. Since April, the shares of Modi Rubber surged up 10% on the Bombay Stock Exchange. However they were not on the trading list on Friday.

It has been told by the Modi Company that after the successful deal, Modi Tyres will now become a wholly-owned subsidiary of Continental Group. After taking hold of Modi’s subsidiary, the Continental will be focusing on the domestic market, and will manufacture non-radial or bias tyres and radial tyres for trucks and buses and also radial tyres for cars. The Germany Company for the year of 2010, had sales of $37.5 billion. The company holds shares in as many as 46 countries.