The report says that Bridgestone will buy an 8.7% share in Toyo, and Toyo, in turn, will buy a 0.5% share in its larger rival.

One chief goal of the relationship, says Bloomberg, is having the companies work together to help lower – or at least stabilize – raw material costs.

“Surging raw material costs prompted the tie-up,’” Toru Iwai, an analyst at Credit Suisse Group in Tokyo, told Bloomberg. “Toyo Tire will be the greater beneficiary as its earnings are getting hammered.’”

The two tiremakers will also work together to develop new production methods, a statement from the two companies stated.

There was no immediate indication if the relationship will expand beyond the stock swap. (Tire Review/Akron)