Goodyear-Cooper takeover gains Chinese antitrust approval

Goodyear’s at least US$2.5 billion takeover of Cooper has passed a significant milestone, following the deal’s approval by antitrust authorities in China. According to official filings, the merger between Goodyear Tire and Rubber Company and Cooper Tire & Rubber Company was approved by the State Administration for Market Regulation (SAMR) on 23 April 2021.

Financial markets responded positively to the news of the approval, with Goodyear’s share price rising 3.57 per cent from 17.65 to 18.28 when markets closed on the day of the SAMR’s approval.

News of the regulatory approval, which was conducted under SAMR’s simplified procedure, is significant for two reasons. Firstly, because problems in China could have scuttled the whole deal. Indeed, internal disputes (including issues with trade unions) played no small part in the failure of Apollo’s takeover of Cooper a few years back. And secondly, Chinese antitrust approval impacts the timing of the takeover. No specifics are available yet, but we know that Peoples Republic-related delays, shouldn’t be too much of a problem now.

Goodyear’s post-merger position in China is one of the key motivations for its merger with Cooper. As a result of the acquisition, the combination will almost double Goodyear’s presence in China. According to Goodyear, it will also increase the Akron, Ohio-based tyremaker’s OE tyre supply position.

Read our special Goodyear-Cooper takeover digital supplement for detailed coverage of the deal.