Topic: How To Invest

Power Growth Investor Hotline – Friday, February 26, 2021

Article Excerpt

GOODYEAR TIRE & RUBBER CO., $16.81, is still a buy. The company (symbol GT on Nasdaq) is one of the world’s largest tiremakers, with 47 plants in 21 countries. The stock jumped over 20% this week after Goodyear announced it has agreed to buy Cooper Tire & Rubber Co. (symbol CTB on New York). The deal will combine the two biggest tire manufacturers based in the U.S. Goodyear will pay about $2.8 billion in cash and stock for its smaller rival. Cooper shareholders will receive $41.75 a share in cash and 0.907 shares of Goodyear, or about $57.00 a share in total. The acquisition will give the company annual revenue of roughly $17.5 billion, more than 50 factories and around 72,000 employees. Meanwhile, Goodyear expects to realize $165 million of cost savings annually within two years after the deal is completed. The savings won’t come from closing plants. Instead, the combined company will focus on eliminating overlapping selling and administrative expenses as well as…

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