Bridgestone, Toyo to develop business ties

Tokyo, Japan -- Bridgestone Corp. and Toyo Tire & Rubber Co., Ltd. have entered into a business and capital alliance agreement. The two companies have also agreed to work together mreo closely to develop further ties in the area of operations and capital resources.

The two companies said they have formed project teams to look at specific areas, including advanced productions systems; joint purchasing of raw materials; sharing production resources; logistics and business other than tyres.

As a first step in this project, the two comapnies have agreed to a mutual share cross-holding. Toyo is to issue new shares which will be offered to Bridgestone, and Bridgestone has committed to take all of them, while Bridgestone will offer an equivalent value in its shares to Toyo. Toyo will issue 20 million new shares, or around 8.7 percent of the total share capital. The current share price is around 440 yen, making the transaction worth around 8800 million, or Euro 54 million.

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Press release from Toyo

Press release from Bridgestone