US tyre maker Goodyear to sell Dunlop brand to Japan's Sumitomo

WASHINGTON: US tyre company Goodyear will sell its Dunlop brand to Japan's Sumitomo Rubber Industries, the company announced on Tuesday.

The US$701 million (RM3.2bil) sale includes the Dunlop brand and its trademarks and intellectual property in Europe, North America and Oceania, Goodyear said.

The transaction is expected to close by mid-2025.

Goodyear chief executive Mark Stewart said the sale was an important milestone.

"Not only does the transaction deliver significant value for our shareholders, it better positions Goodyear to enhance our focus on the growth of our core brands."

Goodyear will continue to manufacture, sell and distribute Dunlop-branded consumer tyres in Europe through to at least Dec 31.

The agreement will automatically extend for an additional year, through Dec 31, 2026, unless the parties mutually agree to an earlier termination.

Following the completion of that agreement, Goodyear will supply certain Dunlop branded tyres to Sumitomo Rubber Industries in Europe for a five-year period, with minimum purchase quantities of 4.5 million tyres per year for the five-year term, on a take-or-pay basis.

Goodyear will license back the Dunlop trademarks from Sumitomo for commercial truck tyres in Europe on a long-term basis, subject to a royalty on sales.

Goodyear noted that it will also retain its rights to the Dunlop trademarks for its motorcycle tyre businesses in Europe and Oceania.