2/22, 1:37 PM (Source: TeleTrader)
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Goodyear to acquire Cooper in $2.8 billion deal

Goodyear Tire & Rubber Company said on Monday that it reached an agreement to buy Cooper Tire & Rubber Company in a deal with an enterprise value of around $2.5 billion. The company added that Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion.

The transaction is expected to close in the second half of 2021, the tire giant said. Upon closing, Goodyear shareholders will own approximately 84% of the combined company, while Cooper shareholders will own around 16%. "The addition of Cooper’s complementary tire product portfolio and highly capable manufacturing assets, coupled with Goodyear’s technology and industry-leading distribution, provides the combined company with opportunities for improved cost efficiency and a broader offering for both companies’ retailer networks," said Goodyear CEO Richard Kramer.

Breaking the News / DJ