Sumitomo Rubber Industries Ltd. agreed to acquire Dunlop tire trademark rights in Europe, North America and Oceania from Goodyear Tire & Rubber Co., marking a significant expansion of its global footprint.
The Japanese manufacturer will pay $526 million for the rights, plus an additional $105 million for transition support and inventory costs. The deal excludes rights in India, Malaysia, Singapore and Brunei for four-wheel tires, and India, Europe and Oceania for motorcycle tires.
The transaction, expected to close in May 2025, gives Sumitomo nearly worldwide control of the Dunlop brand. The company plans to position Dunlop as its premium offering alongside its existing Falken brand in Western markets.
While Sumitomo touts the deal as transformative for its global expansion, the company faces challenges in a highly competitive market. Goodyear’s own financial performance shows the pressure on tire manufacturers, with operating profit of $695 million on sales of $20.1 billion in 2023, reflecting slim margins in the industry.
The acquisition continues Sumitomo’s decades-long relationship with the Dunlop brand, which began in the 1980s. The company will need to prove it can successfully integrate the new rights while maintaining profitability in an increasingly crowded premium tire segment.
