Yokohama to buy Goodyear’s OTR tyre business for US$905 million

YOKOHAMA Rubber agreed to acquire Goodyear Tire & Rubber’s Off-the-Road (OTR) tyre business for US$905 million as part of the Japanese manufacturer’s global expansion plan.

The OTR business will be a future growth driver, Yokohama Rubber said in a statement about the acquisition on Monday (Jul 22), which confirmed an earlier Bloomberg News report. In a separate statement, Goodyear said it will retain the part of the business that provides OTR tyres for US military and defence applications. The transaction could be completed by early 2025, Goodyear said.

Yokohama Rubber had been in advanced talks with Goodyear for the OTR business after other suitors dropped out, Bloomberg News reported earlier this month. Japanese companies have been stepping up deals in industries ranging from industrials to health care and technology, buying assets overseas to help diversify and expand amid sluggish growth at home. 

Yokohama Rubber’s products include tyres for passengers cars, trucks and buses, as well as industrial vehicles, its website shows. OTR tires are used in industries such as mining. The company’s other products include conveyor belts, rubber plates and marine fenders, as well as golf-related equipment. Yokohama Rubber’s stock fell 1.6 per cent in Tokyo on Monday.

Akron, Ohio-based Goodyear said in November it was pursuing alternatives for its chemical business, Dunlop brand and OTR unit, with the aim of raising at least US$2 billion. The company named it the “Goodyear Forward” plan. BLOOMBERG