Name: Goodyear Agrees to Buy Cooper Tire for About $2.8 Billion
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Goodyear Agrees to Buy Cooper Tire for About $2.8 Billion

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Read full articleCécile Daurat and Keith Naughton(Bloomberg) -- Goodyear Tire & Rubber Co. agreed to buy Cooper Tire & Rubber Co. for about $2.8 billion, strengthening its position as No. 1 in the U.S. market and almost doubling its presence in China, where auto sales are surging again.Cooper shareholders will receive $41.75 a share in cash and 0.907 shares of Goodyear, or about $54.36 a share in total, according to a statement Monday. That’s 24% above Cooper’s closing price as of Feb. 19.Goodyear shareholders will own about 84% of the combined tire maker. The companies anticipate savings of about $165 million over two years from the merger.The initial cost benefits will come from combining corporate functions, research and development and procurement, the tire maker said. And while no manufacturing jobs or plants are being eliminated initially, the companies said they see opportunities to leverage their combined production system.“As we develop business plans, we’ll start to take a look at what opportunities, including revenue growth and including how to better leverage the combined manufacturing footprint, we might be able to get,” Richard J. Kramer, Goodyear’s chairman and chief executive officer, said on a call with analysts Monday. “We definitely feel like those opportunities are going to be there.”Goodyear Tire’s purchase is a win for both companies, KeyBanc analyst James Picariello wrote in a note. Picariello said the deal “represents the rare instance of a clear, great deal for both parties.”With Cooper, founded in 1914, Goodyear gains the fifth-largest tire manufacturer in North America by revenue, with about 10,000 employees worldwide. In China, Akron, Ohio-based Goodyear will gain better access to local manufacturers and create broader distribution for Cooper replacement tires.The tire industry is recovering from the pandemic slump. Last week French tire maker Michelin predicted business will return to pre-pandemic levels in the second half of 2022, with Chief Executive Officer Florent Menegaux saying the company needs to rebuild inventories after demand snapped back more strongly than expected late last year.Story continuesCooper shares jumped 24% to $54.31 at 9:47 a.m in New York. Goodyear’s stock rose 7.5%.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, the companies said in the joint press release.Lazard Ltd. advised Goodyear along with JPMorgan Chase & Co. while Goldman Sachs Group Inc. advised Cooper.(Updates with advisers in last paragraph)For more articles like this, please visit us at to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.Cooper Tire & Rubber Company56.64The Goodyear Tire & Rubber Company16.82

Read full articleCécile Daurat and Keith Naughton(Bloomberg) -- Goodyear Tire & Rubber Co. agreed to buy Cooper Tire & Rubber Co. for about $2.8 billion, strengthening its position as No. 1 in the U.S. market and almost doubling its presence in China, where auto sales are surging again.Cooper shareholders will receive $41.75 a share in cash and 0.907 shares of Goodyear, or about $54.36 a share in total, according to a statement Monday. That’s 24% above Cooper’s closing price as of Feb. 19.Goodyear shareholders will own about 84% of the combined tire maker. The companies anticipate savings...

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Goodyear Agrees to Buy Cooper Tire for About $2.8 Billion

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