Penske Automotive Group has agreed to be taken private by Penske Corporation and Mitsui & Co. in a deal that values the car and commercial-truck retailer at about US$16.3bn including debt. Shareholders other than the two buyers will receive US$212.00 a share in cash, the company said on 15 October.
Why Motown Acquisition Corp. (Penske Corporation and Mitsui & Co.) is buying Penske Automotive Group, Inc.
The special committee concluded that the offer provided the greatest value for minority shareholders compared with remaining a public company. Penske and Mitsui said they planned to combine their capabilities and networks to build on the group's operations and pursue new opportunities; Mitsui has been a shareholder for 25 years.
Deal terms and financing
The buyer is Motown Acquisition Corp., owned by Penske Corporation and Mitsui. The price compares with an unsolicited, non-binding proposal of US$210 a share made in July. The deal is not subject to a financing condition, and the company may keep paying regular quarterly dividends until closing.
Regulatory approvals and timing
Completion requires regulatory approvals and two shareholder votes: a majority of outstanding shares and a majority of votes cast by unaffiliated shareholders. Closing is expected in the first quarter of 2027, after which the shares will be delisted from the NYSE.
Market context
Penske Corporation and Mitsui already controlled Penske Automotive before the deal, and CBT News reported that the buyers were seeking the roughly 28% they did not already own. The shares rose about 9% in early trading on the news.
