Japanese manufacturer Yokohama Rubber is set to acquire Goodyear Tire & Rubber’s off-the-road tire business for $905 million, marking a significant move in their global expansion strategy. The OTR business will serve as a key growth driver for Yokohama Rubber, according to a statement released on Monday.
On the other hand, Goodyear will retain the portion of the business that supplies OTR tires for U.S. military and defense applications. The deal is expected to be finalized by early 2025. Yokohama Rubber’s pursuit of the OTR business came after other interested parties backed out, highlighting the Japanese trend of acquiring foreign assets to drive growth.
Yokohama Rubber, known for its wide range of products including tires for passenger cars, trucks, and buses, sees OTR tires as a strategic addition to its industrial offerings. This acquisition aligns with Goodyear’s broader plan, “Goodyear Forward,” which aims to streamline operations and generate at least $2 billion through divesting certain business units.
With this significant acquisition on the horizon, Yokohama Rubber looks set to strengthen its position in the global tire market and diversify its product portfolio for long-term growth.
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