Search CarGuide.PH

February 23, 2021

Goodyear is Buying Cooper Tires

Goodyear Tire & Rubber Co. is buying Cooper Tire & Rubber Co. for about USD 2.8 billion. With this, Goodyear is poised not just to strengthen its position in the North American tire market, but almost doubling its presence in China.

With Cooper, Goodyear gains the fifth-largest tire manufacturer in North America by revenue, with about 10,000 employees worldwide. In China, Cooper will also gain better access to local manufacturers and create a broader distribution network for their tires in China since plans are in place to sell them through Goodyear’s retail stores.

Cooper’s brand portfolio includes Cooper, Mastercraft, Roadmaster, and Mickey Thompson.

Currently, Goodyear ranks third in North American tire sales by revenue, generating USD 5.1 billion in revenue last year. They also hold the top market share in North American original-equipment and replacement tires for passenger vehicles. They hold a 25 percent market share in factory-installed tires, and a 10.5 percent share of passenger vehicle replacement tire sales.

The deal will help Goodyear Tires and Cooper Tires combine corporate functions, R&D, and procurement. And while no manufacturing jobs or plants are being eliminated initially, the companies said they see opportunities to leverage their combined production system.

The combined company will be headquartered in Akron, Ohio, but Goodyear expects to maintain a presence in Findlay, Ohio.

The deal, which must meet certain regulatory requirements and must be approved by Cooper shareholders, is expected to close in the second half of 2021.

No comments:

Post a Comment

Feel free to comment or share your views. Comments that are derogatory and/or spam will not be tolerated. We reserve the right to moderate and/or remove comments.