Penske Corp and Japanese trading company Mitsui, the two majority owners of Penske Automotive Group, have submitted a cash offer of $210 per share to take the auto dealership giant off public stock markets, according to a regulatory filing released Wednesday.
Shares of Penske Automotive Group climbed more than 11% during morning trading following the news.
In a separate statement, Mitsui disclosed that the total estimated cost of the acquisition for both companies would reach $3.8 billion.
Penske Corp, a transportation company, currently holds more than 52% of Penske Automotive Group, while Mitsui owns more than 20% of the company.
Publicly traded auto dealership groups like Penske Automotive Group have drawn investor interest due to their steady service revenue streams and the ongoing trend of consolidation within the automotive industry.
Penske Automotive Group runs dealerships across the United States, the United Kingdom, Canada, Germany, Italy, and Japan. The company also sells commercial vehicles, engines, power systems, and related parts and services, with operations focused primarily in Australia and New Zealand.
The company was originally established as United Automotive Group in 1990. Nine years later, it came under the ownership of Penske Corp, the private holding company of former race car driver Roger Penske. Mitsui made its first investment in the company in 2001, and the business was rebranded as Penske Automotive Group in 2007.
