Penske Automotive agrees to be taken private by Penske Corp. and Mitsui in $16.3 billion deal

Penske Automotive Group, one of the world’s largest car and commercial truck retailers, has agreed to be taken private by an entity owned by its two largest shareholders, Penske Corporation and Japan’s Mitsui & Co., the company announced on Thursday (US time).

Shareholders other than the buyers and their investor group will receive $US212 a share in cash, valuing the company at an enterprise value of about $16.3 billion. The price is an 8.84% premium to the closing share price on 14 October, the company said. After the deal, Penske Corporation would own about 64% of the company and Mitsui about 36%.

A special committee of independent directors unanimously recommended the deal, and the board approved it. “The Special Committee thoroughly reviewed the proposal,” committee chair David Hoogendoorn said, adding that it provided the greatest value for minority shareholders.

Roger Penske, the company’s chair and chief executive, said Mitsui had been a shareholder for 25 years. “This transaction marks an important next chapter for PAG,” he said.

The deal is expected to close in the first quarter of 2027, subject to regulatory approvals and votes by shareholders, including a majority of votes cast by unaffiliated shareholders. The shares would then be delisted from the New York Stock Exchange.

The company, based in Bloomfield Hills, Michigan, operates dealerships in countries including the United States, the United Kingdom and Australia and employs more than 28,900 people.