Toyota to acquire 4.94% stake in Suzuki


While Toyota (TKM) and Suzuki (MSIL) are already collaborating in India, selling the Glanza, the parent companies have announced a new capital alliance agreement. In brief, both companies want to establish a long-term partnership and collaborate in new fields, including autonomous driving.

The purpose of the alliance, according to both companies, is to achieve sustainable growth by leveraging Toyota’s strength in electrification technologies and Suzuki’s strength in making compact vehicles.

The automobile sector is currently experiencing a turning point unprecedented in both scope and scale, not only because of enhanced environmental regulations, but also from new entries from distinct industries and diversified mobility businesses.

What’s more interesting is that Toyota plans to acquire 24,000,000 shares of common stock in Suzuki, which is 4.94 percent ownership of the total number of shares issued by Suzuki as of March 31, 2019 (excluding treasury shares), with a total value of JPY 96 billion. Suzuki too, plans to acquire shares in Toyota equivalent to JPY 48 billion.

However, these share acquisitions will be implemented after the companies obtain approvals from the competition authorities.

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