Goodyear Tire rises after $905 mln deal to sell its off-road unit to Yokohama Rubber

Yokohama Rubber Co

22/07/2024 11:10

** Shares of Goodyear Tire & Rubber Co  GT.O  rise 1% to
$12.22 premarket
    ** Co says it has signed a definitive agreement to sell its
off-the-road tire business to Yokohama Rubber Company for $905
million in cash 
    ** Goodyear will retain its business providing off-road
tires for U.S. military and defense applications, it said
    ** Goodyear intends to use transaction proceeds to reduce
leverage and fund initiatives in connection with its forward
transformation plan
    ** Co to manufacture certain OTR tires for Yokohama at some
of its manufacturing locations for an initial period of up to 5
years after the closing of the transaction, it says
    ** The transaction is expected to close by early 2025
    ** YTD, stock has fallen 15.5% 

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.parmar@thomsonreuters.com))