Sumitomo Rubber agreed to buy the Dunlop trademark rights for four-wheel vehicle tires in Europe, North America and Oceania from Goodyear for $526 million, plus a transition fee of about $105 million, with inventory paid for separately. Goodyear, which valued the overall transaction at $701 million, keeps a long-term license for Dunlop commercial truck tires in Europe and its motorcycle tire rights in Europe and Oceania. The deal reunites the Dunlop brand under Sumitomo Rubber in most major markets. The deal Goodyear's breakdown of the announced $701 million was $526 million for the Dunlop brand and related intellectual property, a $105 million up-front transition fee, and inventory that Goodyear estimated at about $70 million, subject to a true-up. Sumitomo Rubber's disclosure likewise listed the transition support fee and the purchase of initial inventory as separate payments due at closing. Goldman Sachs was lead financial adviser to Goodyear, with Barclays as additional adviser and Cleary Gottlieb Steen & Hamilton as legal counsel. Goodyear continues to make Dunlop consumer tires in Europe under a transition license that runs through December 31, 2026 unless ended earlier by mutual agreement. After that, it will supply Sumitomo Rubber with at least 4.5 million Dunlop tires a year for five years under an offtake agreement. Closing and accounting Goodyear's 10-Q for the quarter to June 30, 2025 shows gross cash proceeds at closing of $735 million. Goodyear booked an estimated pre-tax gain of $385 million, based on $133 million of net assets sold and net of $26 million of transaction costs. It deferred $105 million tied to the transition fee and $86 million allocated to European tire inventory. The gain lifted Goodyear to second-quarter net income of $254 million, against an adjusted net loss of $48 million. Goodyear said the proceeds would go to cutting debt and funding its Goodyear Forward turnaround plan. Background Sumitomo Rubber and Goodyear had run joint manufacturing and sales ventures in Europe and North America since 1999. Goodyear sought to end the alliance in February 2014 and filed for arbitration at the International Chamber of Commerce. Sumitomo Rubber announced the dissolution on June 4, 2015, with Goodyear keeping Dunlop replacement tire rights in the U.S., Canada and Mexico and in Europe. Strategy and next steps Sumitomo Rubber plans to make Dunlop its core brand, with Falken positioned at the top of its second tier. In North America it will use the national retail and 18,000-outlet dealer network built for Falken to sell Dunlop passenger car tires, including tires with its Active Tread technology. The shift sits within the first phase (fiscal 2025-27) of its R.I.S.E. 2035 long-term plan, which centers on premium tires. Sumitomo Rubber North America was renamed Dunlop Tires North America in January 2026. Its first Dunlop product under the new ownership is the Blue Response A/S touring tire, and trade press reported plans to expand it from 44 to 80 sizes in the second half of 2026 and to launch a second Dunlop tire, the Grandtrek HLX, by the end of 2026.
