Goodyear-Cooper Deal Clears Another Hurdle

The Goodyear-Cooper deal has cleared another regulatory hurdle, and at the same time Goodyear Tire & Rubber announced that it will offer US$1.45 billion in senior notes to fund the cash portion of the acquisition.

In a filing with the US Securities and Exchange Commission, Goodyear stated on May 10 that the waiting period required by the Hart-Scott-Rodino Antitrust Improvement Acts of 1976 had expired. Goodyear noted the acquisition of Cooper Tire & Rubber Co. “remains subject to certain regulatory approvals and customary closing conditions.”

Mergers are reviewed by both the Federal Trade Commission (FTC) and the Antitrust Division of the US Justice Department. The Hart-Scott-Rodino Antitrust Improvements Act requires companies to file paperwork about mergers — usually for those valued at more than US$92 million — and it creates waiting periods before deals can close.

The FTC stated, “If the waiting period expires or is terminated (early), the parties are free to close their deal.”

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