Goodyear OTR, leadership changes and landslides
Bridgestone’s share prices is up 1.41 per cent year-to-date and Michelin stock is up 13.92 per cent year-to-date, by comparison Goodyear’s share price has really dropped (Source: Google Finance)
During the course of July, we all witnessed a veritable landslide of changes. In turn, these developments have implications across European and even global markets. And yes, of course, there was also that small matter of a general election and a new Prime Minister in the UK (see page 36 of the forthcoming August edition of Tyres & Accessories). But that’s not what I am referring to here…
Like many of us, in July and August, I took some time out for a family holiday. Upon my return, I learnt that two particularly headline-grabbing news items had broken. Arguably the biggest and most wide-ranging news was Yokohama’s confirmation that it is buying Goodyear’s OTR business. Clearly, that development has strategic implications for both parties. The confirmation came on 22 July, 12 days after reports suggested Yokohama was in “advanced talks” with Goodyear to buy Goodyear OTR. Yokohama subsequently confirmed those reports, so it wasn’t a surprise that they would announce the news just under a fortnight later. Indeed, as we reported at the time, Tyres & Accessories learnt that several suitors had been involved in earlier talks relating to the purchase of Goodyear OTR about a month earlier than that.
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