Goodyear is taking over Cooper in a deal that has been approved by the boards of directors of both companies, Cooper shareholders will receive US$41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately US$2.8 billion.

Upon closing of the transaction, Goodyear shareholders will own approximately 84-percent of the combined company, and Cooper shareholders will own approximately 16-percent.

The combined company will have approximately US$17.5 billion in pro forma 2019 sales.

Cooper is the fifth-largest tire manufacturer in North America by revenue with approximately 10,000 employees working in 15 countries worldwide, the companies say. Cooper products are manufactured in 10 facilities around the globe, including wholly-owned and joint venture plants. The company’s portfolio of brands includes Cooper, Mastercraft, Roadmaster and Mickey Thompson.

Goodyear says the combined company will offer tyre products and a broad selection of services through Goodyear’s relationships with traditional and emerging original equipment manufacturers; autonomous driving system developers; new and established fleet operators and other mobility platforms. Goodyear adds there will be opportunities for expansion of select Cooper facilities.