Goodyear Tire & Rubber Co. GT, + 18.53% agreed to buy Cooper Tire & Rubber Co CTB, + 29.52%. , an agreement that Goodyear said would allow it to cut costs and develop its business in the United States and China. Goodyear said Monday that it will pay about $ 2.8 billion in cash and shares for its smaller rival, including $ 41.75 a share in cash of Cooper’s stock, which rose about 30% to $ 56.86 in the shares. morning operations. Goodyear shares increased 22% to $ 16.97.
The combined company would generate annual revenue of about $ 17.5 billion and have about 72,000 employees worldwide, according to an investor presentation. Cooper’s tire brands include its namesake line and Mastercraft. Goodyear Chief Executive Richard Kramer said in a call with investors that the proposed acquisition would bring the combined company’s replacement tire sales volumes in the United States to about $ 64 million. In China, the deal would help Goodyear sell more new and replacement tires, and the latter market is expected to grow rapidly in the coming years, he added. An expanded version of this article appears on WSJ.com Popular WSJ.com Stories: