US-based Goodyear Tire & Rubber Company has decided to part ways with Japanese Sumitomo Rubber Industries on the global front, bringing an end to the alliance formed in 1999.
Both the companies have inked an agreement that would address the pending arbitration filed in January last year and enable them to avoid expense and uncertainty of the process.
The alliance comprised four joint venture operating firms, one each in North America and Europe, and two in Japan.
Goodyear chairman and CEO Richard J. Kramer said: "While we have derived value from the alliance over the last 16 years, Goodyear is well positioned today to pursue our strategy on our own.
"This successful resolution increases our flexibility to grow profitably as we continue to focus on delivering strong performance and sustainable economic value."
As per the agreement, SRI which currently has 25% stake in North America joint venture will get hold of Goodyear's 75% interest in Goodyear Dunlop Tires North America (GDTNA). The firm makes and sells Dunlop-brand tires in North America.
As for the European joint venture, Goodyear with a 75% stake will acquire SRI's 25% interest in Goodyear Dunlop Tires Europe (GDTE).
The Japanese joint venture will witness Goodyear grabbing SRI's 75% share in Nippon Goodyear that caters to the replacement market in that country with Goodyear-brand tires.
The agreement also mandates Goodyear paying SRI $271m following the conclusion of the transaction.
