The Goodyear Tire & Rubber Company (NASDAQ: GT) has acquired rival Cooper Tire & Rubber Company (NYSE: CTB) for $2.8 billion. The takeover will be in cash and stock. Since the acquired assets are easily integrated into Goodyear’s current business, the acquisition will expand Goodyear’s product line. Since its founding in 1914, Cooper Tire manufactures several types of tires for cars, pickup trucks, and trucks. It stands out among other companies in the premium segment and retail sales.
Goodyear acquired Cooper Tire & Rubber Company at a premium of 24%. Goodyear Tire & Rubber Company (GT) closed standard trading at $17.01 with a gain of 1.13%. There have been 11.88 million shares traded yesterday, and this stock’s average trading volume currently stands at 3.65 million shares per day. Consider the 52-week high and low price points when assessing a stock’s current and future price. Shares of The Goodyear Tire & Rubber Company (GT) are currently 320.18% above their 52-week low mark.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
The Goodyear Tire & Rubber Company (GT) will likely double its presence in China as a result of the deal. Sales of cars and trucks have increased in this fast-growing market. The forecast for sales in 2021 is for sales to increase by 7.5% to 21.7 vehicles. Goodyear could benefit from this because all vehicles, including hybrids and all-electrics, need tires.
Goodyear generates about one in four sales in the Asia-Pacific region from sales in China, which provides the company with $ 1.75 billion in total revenue. By acquiring Cooper Tire & Rubber Company, Goodyear will expand its market share in China.
The Goodyear Tire & Rubber Company (GT) shareholders will own roughly 84 % of the combined company under the terms of the deal. Besides, Goodyear aims to save about $165 million over the next two years.
