Media: Yokohama to acquire Goodyear's OTR tire production

Yokohama Rubber is at an advanced stage of negotiations to purchase the business of Goodyear in the segment of tires for special equipment "for no less than $1 billion", reports Bloomberg with reference to its sources.

It is noted that the Japanese company has become the most likely buyer after negotiations with other bidders were unsuccessful, and the deal is estimated at $1-1.5 billion. One source said that Yokohama is currently negotiating with banks on possible financing, and negotiations with Goodyear are ongoing and may not lead to a deal. Both companies declined to comment.

Bloomberg notes that currently, a number of Japanese companies operating in various fields, from industry to healthcare, are considering the possibility of acquiring assets abroad to diversify their business and accelerate growth amid slow development in the domestic market.

Yokohama has acquired two major manufacturers of OTR tires in recent years. In 2016, the company acquired Alliance Tire Group (ATG), which has two plants in India and another in Israel, and on May 2, 2024, it was announced that the deal to acquire the Swedish company Trelleborg Wheel Systems Holding (TWS), which owns 14 production sites, had been completed.

Goodyear announced plans to sell its off-the-road tire business in November last year. At the same time, it was reported that as part of the restructuring, the company intends to sell the rights to the Dunlop brand and its chemical products business. In total, Goodyear plans to raise at least $2 billion from the sale of assets.

In the OTR segment, the main competitors of Goodyear are, for example, Bridgestone and Michelin, and the company said that its competitors are increasing capacity in countries with low production costs and aggressively taking market share.

Currently, Chinese companies are also actively expanding their presence in the OTR tire segment, and in recent months, Aeolus, Guizhou Tyre, Linglong, and Double Coin have announced the launch of new production of such tires.

Goodyear produces tires for special equipment at plants in Topeka (Kansas, USA) and Tatsuno (Japan). In addition, agricultural tires under the Goodyear brand are produced by Titan International (including at "Voltyre-Prom") under a licensing agreement.