Yokohama Said to Hold Talks for Goodyear’s OTR Tire Business

Yokohama Rubber Co. is in advanced negotiations to acquire Goodyear Tire & Rubber Co.'s off-the-road tire business for a potential valuation of $1-1.5 billion. This move signifies Yokohama's strategic expansion into a new segment of the tire industry. The potential acquisition reflects a trend among Japanese companies to seek growth opportunities abroad amidst domestic economic challenges. Yokohama's product portfolio encompasses a wide range of tires, including those for industrial and mining vehicles, aligning with the off-the-road tire business it aims to acquire. The company's diversified product offerings also include conveyor belts and marine fenders. The proposed acquisition could bolster Yokohama's market position and contribute to its overall growth trajectory. On the other hand, Goodyear's decision to explore divestment options for its off-the-road unit is part of its broader initiative, the "Goodyear Forward" plan, aimed at optimizing its business portfolio and generating funds. The tire industry landscape is becoming increasingly competitive, with companies like Bridgestone Corp. and Michelin intensifying their efforts to capture market share. The potential acquisition by Yokohama underscores the dynamic nature of the global tire market and the strategic maneuvers undertaken by industry players to stay competitive and innovative.