Yokohama Rubber Co. is buying Goodyear Tire & Rubber Co.’s Off-the-Road (OTR) tire business for $905 million. This purchase is part of Yokohama Rubber’s plan to expand globally.
Yokohama Rubber believes that the OTR business will help the company grow in the future. Goodyear will keep the part of its business that supplies OTR tires to the US military and defense sectors. The deal is expected to be finalized by early 2025.
Yokohama Rubber entered into advanced talks with Goodyear after other potential buyers dropped out. Japanese companies, including Yokohama Rubber, have been buying businesses in various industries around the world to grow and diversify, as growth in Japan has slowed.
Yokohama Rubber makes tires for passenger cars, trucks, buses, and industrial vehicles. OTR tires are used in industries like mining. The company also produces conveyor belts, rubber plates, marine fenders, and golf equipment. After the announcement, Yokohama Rubber’s stock fell by 1.6% in Tokyo on Monday.
In November, Akron, Ohio-based Goodyear said it was exploring options for its chemical business, Dunlop brand, and OTR unit to raise at least $2 billion. This effort is part of what Goodyear calls the “Goodyear Forward” plan.
