Penske Corp and Mitsui & Co. submitted a proposal on Wednesday to acquire all remaining shares of Penske Automotive Group (PAG) for $210 per share in cash. According to a regulatory filing, the deal is valued at approximately $3.8 billion. Following the announcement, shares of the automotive retailer rose more than 11% in morning trading.
The two entities already serve as controlling shareholders of the company. Penske Corp currently holds a 52% stake, while Mitsui & Co. owns more than 20%. The proposed transaction would transition the publicly traded dealership chain into a private entity.
Penske Automotive Group operates a network of dealerships across the United States, United Kingdom, Canada, Germany, Italy, and Japan. The company also manages commercial vehicle and power system retail operations in Australia and New Zealand. The business was originally established in 1990 and has been under the control of Roger Penske’s holding company since 1999.