Bridgestone Buys Stake in Japanese Tire Maker

Tire maker Bridgestone Corp. will take an 8.7% in Japan’s Toyo Tire, which will in turn purchase 0.5% of Bridgestone, the two said in a statement, Bloomberg reported.

The two plan to cooperate on buying rubber and petroleum-based synthetic materials amid surging prices, Bloomberg said.

Bridgestone forecasts net income will fall 32% this year as it pays more for raw materials, and Toyo predicts earnings will plunge 64%, Bloomberg reported.

Bridgestone Corp. is the Japanese unit of Bridgestone Americas Holding, which makes Bridgestone, Firestone and Dayton brand commercial truck tires in North America.