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Jun 09, 2021
Goodyear now owns Cooper Tire as $2.8 billion purchase is completed

Cooper Tire & Rubber Co. is now a subsidiary of Goodyear.

The two Ohio tire makers on Monday announced that they had completed the merger of Findlay-based Cooper with Goodyear Tire & Rubber Co. that was announced on Feb. 22.

The deal is intended to solidify Akron-based Goodyear as the largest U.S.-based tire maker with its purchase of Cooper, the fifth-largest North American tire maker. It also bolsters Goodyear's product offerings across the globe, including doubling its presence in China.

Shares of Goodyear closed down $1.07 or 5.2% Monday to $19.39. Shares have ranged from a low of $7.28 to a high of $20.70 over the last 52 weeks.

Goodyear raises $1.4 billion for acquisition through debt notes

Goodyear is financing the approximately $2.8 billion purchase with $2.1 billion in cash and issuing about 46 million shares in stock, according to a filing with the Securities and Exchange Commission. Besides using cash on hand, Goodyear raised about $1.4 billion in cash for the purchase by issuing debt earlier this year. The deal is expected to add to Goodyear earnings within a year and improve Goodyear's balance sheet.

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