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Goodyear tune-up may go beyond rotating the tires

Aug 20, 2023; Watkins Glen, New York, USA; A detailed view of Goodyear Eagle racing tires prior to the Go Bowling at The Glen at Watkins Glen International. Mandatory Credit: Matthew O’Haren-USA TODAY Sports Acquire Licensing Rights
NEW YORK, Nov 15 (Reuters Breakingviews) – A century is a long time to accumulate bad habits. Goodyear Tire & Rubber (GT.O) on Wednesday said it would try to shed some, by selling $2 billion of assets, streamlining its business and paying down debt. Corporate cage-rattler Elliott Investment Management, which won seats on the board in July, blessed the moves, which echo shifts rocking other aged industrial icons.
Goodyear’s interests stretch from tire manufacturing to running more than 1,000 retail locations. It’s now slimming down the sprawl, splitting off a chemicals business, among others. Fellow industrial centenarians also are cleaning up messes. General Electric (GE.N) and 3M (MMM.N) are among the others splintering themselves.
United States Steel (X.N) is under pressure over its own modernization efforts, facing down a hostile bid. Goodyear could be rolling toward something bigger, too. Richard Kramer, chief executive for 14 years, is stepping down. As the $4 billion company tidies itself, it could turn out to be worth more in pieces. Its consumer retail operations generate some $195 million of EBITDA, Elliott estimates, which would be worth more than $2 billion on the same multiple as Mister Car Wash. Goodyear also could be a tempting takeover target whole, meaning this corporate pit stop might involve more than just rotating the tires. (By Jonathan Guilford)
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