Penske Automotive to Go Private in $16.3 Billion Deal
Written with artificial intelligence.
Penske Automotive Group has agreed to be acquired by its major shareholders, Penske Corp and Mitsui, in a deal valued at approximately $16.3 billion, including debt. The acquisition is expected to close in the first quarter of 2027.
Deal Overview
Penske Automotive Group announced on Thursday that it will be taken private by its two largest shareholders, Penske Corp and Mitsui. The transaction values the auto retailer at about $16.3 billion, inclusive of debt.
Financial Details
The acquisition will see Penske Corp paying $212 per share, which represents an 8.6% premium over the company’s closing price on July 21, just before the initial proposal was made public. Prior to the announcement, shares of Penske Automotive were up 8.6% in pre-market trading.
Shareholder Implications
Penske Corp, which currently owns over 52% of Penske Automotive, will increase its stake to approximately 64% post-acquisition. Meanwhile, Mitsui, which holds over 20%, will retain a significant interest in the company. The deal is anticipated to close in the first quarter of 2027.