News: Goodyear to buy Cooper Tire for $2.8 billion, doubling China presence.
(Reuters) – Goodyear Tire & Rubber Co announced on Monday that it would acquire Cooper Tire & Rubber Company for approximately $ 2.8 billion to double its footprint in North America and China.
The deal also expands the distribution of Cooper replacement tires through the store network, according to Goodyear.
Under the terms of the transaction, Cooper shareholders will receive $ 41.75 per share in cash and a fixed conversion ratio of 0.907 Goodyear common shares.
The implied cash and stock consideration for Cooper shareholders is $ 54.36 per share, a premium of 24% over the February 19th closing price.
Upon closing, Goodyear shareholders will own approximately 84% of the combined Ohio-based company while Cooper shareholders will own approximately 16%.
Reporting by Lake Shreya Raj and Sanjana Shivdas; Arrangement by Aditya Soni and Krishna Chandra Eluri
Original Source © Reuters