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December 19, 2005 9:15 AM, EST

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oodyear Tire & Rubber Co. said it has reached agreement in principle acquire Ansell Limited's interest in Ansell’s South Pacific Tyres joint ventures.

Goodyear will pay about $40 million for 50% ownership of the tire manufacturer and mar-keter, which has operations in Australia and New Zealand. It will also repay about $50 million of outstanding loans from Ansell to SPT.

Formed in 1987, SPT is the leading tiremaker in Australia and New Zealand, with annual sales of more than $700 million. Its results have been consolidated with those of Goodyear's Asia/Pacific region since January 2004.

“We are excited to own 100% of SPT in Australia and New Zealand and to have a leader-ship position in these important markets," said Pierre Cohade, president of Goodyear's Asia/Pacific business unit.