Shearman And Sterling

News June 10, 2015

Shearman & Sterling Advises SRI on Dissolution of International Global Alliance with Goodyear

Shearman & Sterling represented Sumitomo Rubber Industries, Ltd (“SRI”) in connection with the agreed dissolution of its international global alliance—including certain related operating and intellectual property agreements—with The Goodyear Tire & Rubber Company and resolved a Paris-based ICC arbitration commenced by Goodyear relating to the global alliance.

In 1999, Goodyear, currently the world’s third largest tire maker based on revenue, and SRI, currently the world’s sixth largest tire maker, entered into an intricately constructed business alliance—with Shearman & Sterling representing SRI—that established six corporate entities in Europe, North America, and Asia to design, manufacture and market Dunlop and Goodyear brand tires. After nearly 15 years of operation, in January 2014, Goodyear sought to dissolve the alliance through ICC arbitration in Paris. On June 4, 2015 the parties achieved a tentative settlement under which, among other things, each party will divest in certain joint venture businesses, resulting in Goodyear making a net payment of $271 million to SRI and also repaying indebtedness of $55 million to SRI. In addition, certain joint purchasing and technology joint ventures will be dissolved and the parties will sell off current cross-shareholding in each other’s stock.

The Shearman & Sterling team included partners Henry Weisburg (New York-International Arbitration), James Tallon (New York-Litigation), John Cannon (New York-Compensation, Governance & ERISA), Emmanuel Gaillard (Paris-International Arbitration), Coralie Darrigade (Paris-International Arbitration), and Larry Crouch (Menlo Park-Tax); counsel Miriam Farber (New York-Litigation), Jordan Altman (New York-Intellectual Property Transactions), Toshiro Mochizuki (Tokyo-Capital Markets), Robert Fagiola (New York-Real Estate), and Jeff Salinger (NY-Environmental); and associates Anna Tevini (New York-International Arbitration), Adam Samarillo (New York-Mergers & Acquisitions), Raleigh Morgan (Tokyo-Mergers & Acquisitions), Zach Shub-Essig (New York-Mergers & Acquisitions), Emmeline Widjaja (New York-Mergers & Acquisitions), Brian Calandra (New York-Litigation), Laura Mulry (New York-Environmental), David Ling (New York-Compensation, Governance & ERISA), Mark Pereira (New York-Intellectual Property Transactions), Ryan Bray (New York-Tax) and Alex Rosenthal (New York-Corporate).