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Penske Automotive Group Agrees to $16.3 Billion Go-Private Acquisition Deal

BullishHigh impact
PAG$194.79 −0.45%

Penske Automotive Group, Inc. (NYSE:PAG) has agreed to be taken private in an all-cash transaction with an enterprise value of $16.3 billion. Under the terms of the deal, Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co., Ltd., will acquire all eligible common shares for $212.00 per share in cash. The company board approved the agreement following a unanimous recommendation from a special committee of independent directors.

The deal provides a clear payout price for investors following several months of market speculation regarding potential M&A activity for the retail automotive group. In response to the announcement, shares rose 7.8% in premarket trading to $210.00.

The acquisition is not contingent on financing and is projected to close during the first quarter of 2027. Investors will now watch for shareholder approval and the necessary regulatory clearances required to complete the transaction.

Key points

  • Penske Automotive Group, Inc. (NYSE:PAG) agreed to a go-private deal valued at $16.3 billion.
  • Motown Acquisition Corp. will pay $212.00 per share in cash to public shareholders.
  • The buying entity is jointly owned by Penske Corporation and Mitsui & Co., Ltd.
  • The deal is slated to close in Q1 2027, pending shareholder vote and regulatory approval.
  • Shares jumped 7.8% in premarket trading to $210.00 following the announcement.

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Questions and answers

How much are shareholders getting in the Penske Automotive buyout?

Common shareholders of Penske Automotive Group will receive $212.00 per share in cash.

Who is acquiring Penske Automotive Group?

Penske Automotive Group is being acquired by Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co., Ltd.

When is the Penske Automotive go-private transaction expected to close?

The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and a shareholder vote.