The Yokohama Rubber Company, Limited (TSE:5101) and Aeolus Tyre Co., Ltd. (SHSE:600469) reportedly are in an advanced stage of talks regarding a deal that would see the former Pirelli & C. S.p.A. (BIT:PIRC) industrial/commercial tire unit Prometeon Tyre Group S.r.l split between the two companies. The tire makers could unveil details about the deal as early as the first quarter of 2020, according to two separate sources, who spoke to European Rubber Journal on conditions of anonymity. According to one of the contacts, under the proposed deal Aeolus would take over Egypt-based Alexandria Tires, while Yokohama would acquire the rest of the company's operations, including a plant in Izmit, Turkey, and the two Brazilian factories.

"Negotiations are in progress with Yokohama and Aeolus, however the ownership structure is not finalized," another source close to Prometeon said.