Toyo Tire (TYO:5105) has resolved to terminate its capital and business alliance with Mitsubishi Corp. (TYO:8058), effective Aug. 10, according to a Tokyo bourse filing on Friday.
The alliance, established in 2018 to strengthen sales, technology, and management capabilities, has achieved its initial objectives, and both companies agreed that Toyo Tire has established a structure for autonomous and sustainable growth.
The termination will occur upon the execution of Toyo Tire's treasury share acquisition announced today, which will reduce Mitsubishi Corp.'s ownership below the threshold specified in the alliance agreement.
Despite the end of the formal partnership, both companies plan to maintain a good relationship and continue their business activities going forward.