Japan’s Yokohama Rubber Co. says it is in negotiations to acquire Goodyear Tire & Rubber Co.’s Off-the-Road (OTR) tyre business. According to Bloomberg, the potential deal is valued at around US$1 billion.
If the acquisition goes ahead, it will be significant in the tyre industry, particularly in the OTR segment, which includes tyres for mining, construction, and agricultural vehicles. The reported price highlights the unit’s value and importance.
The company has released a statement acknowledging that it is considering the acquisition, but emphasised that no final decision has been made.
By acquiring a well-established OTR division, Yokohama will be able to enhance its product portfolio, expand its customer base, and leverage Goodyear’s existing market presence.
The Japanese company has emerged as the likeliest buyer for Goodyear’s OTR business after other suitors like Continental dropped out it has been reported.
Yokohama’s products include tyres for passengers cars, trucks and buses, as well as industrial vehicles and mining and construction equipment.
The company’s other products include conveyor belts, rubber plates and marine fenders, as well as golf-related equipment.
Meanwhile, Akron, Ohio-based Goodyear had said last year it was pursuing alternatives for its chemical business, Dunlop brand and OTR unit, with the aim of raising at least US$2 billion.
Goodyear has warned of even greater competition in the tyre sector, with rival manufacturers ramping up capacity in low-cost countries and aggressively seeking market share. Goodyear’s main competitors globally include Bridgestone Corp. and Michelin.