Home / Business and Economy / Penske Auto Goes Private in $16.3B Deal
Penske Auto Goes Private in $16.3B Deal
15 Oct
Summary
- Penske Automotive to go private in a $16.3 billion enterprise value deal.
- Motown Acquisition Corp. will acquire the dealership for $212 per share.
- The transaction is anticipated to conclude in the first quarter of 2027.
Penske Automotive Group has agreed to be acquired by Motown Acquisition Corp. in a deal valued at $16.3 billion. The transaction, announced on Thursday, will see the car dealership group go private.
Motown Acquisition Corp., jointly owned by Penske Corp. and Mitsui & Co., is offering $212 per share, an 8.8% increase over the stock's previous closing price. The deal is projected to be completed by the first quarter of 2027 and is not contingent on financing.
Penske Corp., founded by Roger Penske, along with Mitsui & Co., collectively hold approximately 72% of Penske Automotive's shares. This agreement stems from a proposal made to the company's board in July. Penske Automotive shares saw a notable increase in pre-market trading following the announcement.
