Findlay, Ohio – Cooper Tire & Rubber Co.’s shareholders have overwhelmingly approved the $2.5-billion (€2.1 billion) merger bid with the Goodyear Tire & Rubber Co.
At a special meeting of Cooper Tire stockholders held 30 April, approximately 99% of votes cast were in favour of the transaction, said the Findlay-based tire maker in a statement.
Goodyear is not required to hold a vote of its stockholders to approve the merger agreement.
“We are pleased with the strong support of our stockholders for the proposed business combination of Cooper and Goodyear as all proposals related to the acquisition were approved,” said John Holland, Cooper chairman.
The move, he said, will drive value for shareholders by bringing the two companies together.
Goodyear announced its plans to acquire Cooper in February, saying it would create a $17.5-billion-turnover tire maker “with increased presence in distribution and retail channels while combining… strengths in the highly profitable light truck and SUV product segments.”
Cooper shareholders will receive $41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion.
Subject to customary closing conditions, including regulatory approvals and the approval of Cooper shareholders, the transaction is expected to close in the second half of 2021.
The deal has already been cleared by the Chinese government which grant antitrust approval to the acquisition bid on 23 April.