Houston Chronicle

Goodyear to pay $2.8B for Cooper

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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 percent above Cooper’s closing price as of Feb. 19.

Goodyear shareholde­rs will own about 84 percent of the combined tire maker. The companies anticipate savings of about $165 million over two years from the merger.

While no manufactur­ing jobs or plants are being eliminated initially, the companies said they see opportunit­ies to leverage their combined production system.

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, 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.

Cooper shares jumped 24 percent to $54.31 in New York. Goodyear’s stock rose 7.5 percent.

The deal is expected to close in the second half of 2021.

 ?? Evert Nelson / Associated Press file photo ?? In buying Cooper Tire & Rubber Co., Goodyear gains the fifth-largest tire manufactur­er in North America by revenue.
Evert Nelson / Associated Press file photo In buying Cooper Tire & Rubber Co., Goodyear gains the fifth-largest tire manufactur­er in North America by revenue.

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