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Goodyear, Sumitomo in deal
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February 2, 1999: 7:20 p.m. ET
U.S. tire giant, Japan's Sumitomo Rubber plan broad alliance
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NEW YORK (CNNfn) - U.S.-based Goodyear Tire & Rubber Co. and Japan's Sumitomo Rubber Industries Ltd. have agreed to a wide-ranging alliance that will create the world's largest tire maker.
The deal pairs Goodyear, the world's third-largest tire maker, and Sumitomo, parent of U.S.-based Dunlop and No. 5 worldwide, in a broad share swap, the companies said Wednesday.
As part of the agreement, Goodyear and Sumitomo Rubber will each acquire about 10 percent of the other company's outstanding shares, to the tune of about 10 billion yen, or $86.7 million.
Together the two companies, with combined sales of some 2.3 trillion yen ($19.9 billion), will eclipse Japan's Bridgestone as the world's largest tire maker in sales.
Goodyear will take charge of the companies' operations in the United States and Europe, as Sumitomo Rubber takes the reins for the two companies in Japan.
Shares of Dow component Goodyear (GT), based in Akron, Ohio, closed up 1/8 at 58-3/8 on the New York Stock Exchange Tuesday.
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Goodyear Tire & Rubber
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