Goodyear deal approved in South Africa
YRC, a public company listed on the Tokyo Stock Exchange, will acquire The Goodyear Tyre and Rubber Company (Goodyear) in South Africa.
Goodyear is one of the world’s leading tyre manufacturing companies, with operations in most regions. It is one of the most recognised brand names globally.
Goodyear in South Africa is part of Goodyear Tyre & Rubber Holdings, which reports to the Europe, Middle East, and Africa (EMEA) region.
South Africa started to import tyres from around 1912 to support the country’s growing automotive industry.
Goodyear entered the South African market in 1927 by establishing its first distribution facility in Johannesburg.
The Goodyear manufacturing plant in South Africa was initiated in 1945, and the first tyre was released from production in January 1947.
Over the next few decades, Goodyear rapidly expanded its operations in South Africa and increased its production capacity.
Goodyear has grown its workforce in South Africa to over 1,000 employees, and it produces over 2 million tyres annually in the country.
Goodyear is currently the only tyre manufacturer that produces Off-The-Road Bias (OTR) tyres in South Africa.
OTR tyres are fitted on heavy-duty vehicles, such as mining vehicles, which are vital to the daily operations in the mines of South Africa and elsewhere on the continent.
In July 2024, Goodyear agreed to sell its off-the-road tyre business to Yokohama Rubber Co. (YRC) in a $905 million cash sale.
This month, the Competition Commission approved a transaction in which YRC will acquire Goodyear in South Africa.
In South Africa, YRC controls Yokohama South Africa. It supplies imported non-agricultural off-the-road (OTR) tyres to:
- The original equipment manufacturers (OEM) sales channel.
- The replacement tyre sales channel.
In South Africa, Goodyear supplies non-agricultural OTR tyres within the RT sales channel only, specifically in relation to construction, underground mining, surface mining, and ports.
the Competition Commission said the proposed transaction is unlikely to substantially prevent or lessen competition in any market.
“The proposed transaction does not raise significant public interest concerns,” the commission said.
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