NTAW Holdings Limited (ASX:NTD) Faces Termination of Dunlop Distribution Agreements
Termination Notices Received
On 8 January 2025, NTAW Holdings Limited (ASX: NTD) received notices terminating its Dunlop distribution agreements. This follows Goodyear’s decision to sell its Dunlop trademark and associated assets to Sumitomo Rubber Industries Limited (SRI).
Implications of the Dunlop Sale
The Dunlop distribution agreements allow Goodyear ANZ to terminate the contracts with six months’ notice on brands they cannot use in the region. The notices received by NTD are contingent upon the completion of the Dunlop sale, which is subject to regulatory approvals.
Stock Repurchase Requirement
As part of the agreements, Goodyear ANZ must repurchase any unsold Dunlop stock held by NTD subsidiaries from the last 12 months. NTD, the largest independent tyre distributor in Australia and New Zealand, is reviewing these requirements and obligations.
Future Engagement
NTD has established relationships with both Goodyear and SRI and intends to engage with them regarding the future distribution of Dunlop tyres. The company is committed to keeping the market informed of any developments.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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