The acquisition of Trelleborg Wheel Systems, which makes tyres for agricultural and industrial machinery, is part of the Japanese company's move to focus on its more-profitable off-highway tyres (OHT) business area.

Shares in Trelleborg, which said it estimated a capital gain of 6 billion Swedish crowns ($639 million), rose 22% in early trading, on track for its best day ever.

Trelleborg Wheel Systems had net sales of 10 billion crowns last year, or roughly a third of Trelleborg sales, and had an earnings before interest and taxes (EBIT) operating margin of 12%.

"We further strengthen our capacity to accelerate growth both organically and through acquisitions as well as returning additional capital to shareholders," Trelleborg Chief Executive Peter Nilsson said in a statement.

In light of the transaction, he said the company's financial targets would be communicated later, without giving a date.

The acquisition is scheduled to be completed in the second half of 2022, after meeting regulatory requirements in the European Union and other countries, Yokohama Rubber said.

($1=121.8600 yen)

($1 = 9.3903 Swedish crowns)

(Reporting by Helena Soderpalm and Mariko Katsumura; Editing by Edmund Blair)