In a strategic move that could reshape the landscape of the global off-the-road (OTR) tyre market, Continental AG is reportedly poised to acquire Goodyear’s OTR tyre division. This development comes as Goodyear seeks to streamline its operations under its 'Goodyear Forward' strategy, aiming to focus more intensely on its core retail tyre business, predominantly in North America.

According to financial analysts, Goodyear’s decision to divest its OTR tyre business—valued between $800 million and $1 billion—along with its chemicals business and the Dunlop brand, is a calculated move to optimise its portfolio. The sale is expected to contribute significantly towards Goodyear’s goal of reducing its debt by $1.5 billion, with anticipated proceeds potentially reaching up to $2 billion for the three businesses combined.

Continental’s interest in Goodyear’s OTR business is seen as a "complementary fit", enhancing its current product range and market coverage. Analysts from Jefferies have noted that the acquisition could increase Continental's earnings per share by 4-6% and slightly raise its leverage, which remains well within manageable limits. This acquisition aligns with Continental’s strategic focus areas, including tyres, the Asia-Pacific region, and specialty products.