Maxi-operation in the tire industry. US giant Goodyear has reached an agreement to acquire the rival company cooper at the price of two billion and 800 million dollars in cash and stock. The agreement, which has already been approved by the two companies' boards of directors, provides that Cooper shareholders will receive $41,75 in cash and 0,907 Goodyear shares for every Cooper share.
Based on the closing price on February 19, the last session before the announcement, the value Cooper shareholders received for each of their shares was $54,36, which includes a 24% premium over the closing value of Cooper on February 19 and 36% compared to the average of the last 30 days.
Through this operation, explains a note from the group, Goodyear will expand its product range, incorporating a company that is considered "complementary". Based on 2019 data - the latest available - the agglomeration that will arise from the merger will be a giant with a turnover of 17,5 billion. Upon closing of the merger, existing Goodyear shareholders will own approximately 84% of the combined company and Cooper shareholders the remaining 16%.
Cooper, founded in 1914, is the fifth largest tire manufacturer in North America, with approximately 10 employees in 15 countries. The company owns the Cooper, Mastercraft, Roadmaster and Mickey Thompson brands.
