Goodyear agreed to buy Cooper Tire & Rubber Co. , a deal that seeks to combine the two biggest tire manufacturers based in the U.S. Goodyear said Monday it would pay about $2.8 billion in cash and stock for its smaller rival, including $41.75 a share in cash for Coopers shares, which rose about 30% to $56.89 in afternoon trading. Goodyears shares increased 20% to $16.72. The acquisition would add scale for Goodyear, giving it annual revenue of roughly $17.5 billion, more than 50 factories and around 72,000 employees, according to an investor presentation. Coopers tire brands include its namesake line and Mastercraft. Meanwhile, the companies said they are eyeing $165 million of cost cuts annually within two years after the deal is complete. Goodyear Chief Executive said on a call with investors the proposed acquisition would lift the combined companys sales volumes of replacement tires in the U.S. to about 64 million. In China, the deal would help Goodyear sell more new and replacement tires, with the latter market expected to grow quickly in the coming years, he added. Many of the advantages of the deal will accrue to our businesses in the U.S. and China, the two largest tire markets in the world, he said. Executives said they arent initially looking for cost savings within their plants. Instead, the combined company would focus on duplicative selling and administrative expenses and finding savings tied to research and development, procurement and logistics. Goodyear and Cooper have both said the Covid-19 pandemic weighed on financial results last year as each temporarily shut down plants. Sales last year at Goodyear fell 16% to $12.3 billion and were off 8% at $2.5 billion for Cooper. The combined company will better be able to invest in new mobility and fleet solutions, offering tires and related services to traditional and emerging manufacturers, companies focused on autonomous driving and fleet operators, Goodyear and Cooper said. After the transaction is completed, expected in the second half of the year, the company will be based in Akron, Ohio, Goodyears home office right now, and maintain a presence in Findlay, Ohio, where Cooper is currently based Questions: 1. Is there any question that this transaction is a business combination? Support your answer with reference to the definition of a business combination in authoritative accounting literature. 2. Write a paragraph: based on the article, what is(are) the main benefit(s) accruing to Goodyear Tire & Rubber from this transaction with Cooper Tire & Rubber?