Sumitomo to Acquire Dunlop Trademark Rights in Europe, Others

Tokyo, Jan. 8 (Jiji Press)--Japan’s Sumitomo Rubber Industries Ltd. said Wednesday that it will acquire Dunlop trademark rights in Europe, North America and Oceania for 526 million dollars from U.S. giant Goodyear Tire & Rubber Co.

The deal will allow Sumitomo Rubber to sell Dunlop four-wheel tires in most parts of the world. At present, the company sells Dunlop tires in Asian economies including Japan.

Besides the acquisition cost, Sumitomo Rubber is set to pay 105 million dollars to Goodyear as a support fee, including for the transition of Dunlop customers in Europe, and other expenses including the cost to buy tires in stock.

The Japanese company will not take over manufacturing bases from Goodyear. It will supply products from its own factories in Japan and Thailand.

Sumitomo Rubber was founded as a Japanese factory of British rubber maker Dunlop and later joined the Sumitomo conglomerate. It acquired Dunlop companies abroad in the 1980s and sold Dunlop tires in Europe and North America until it gave up the trademark rights in the markets.

[Copyright The Jiji Press, Ltd.]