Toyota-Suzuki forms capital alliance, to acquire shares in each other to pave way for future investments

New Delhi: Japanese auto majors Toyota Motor Corporation (Toyota) and Suzuki Motor Corporation (Suzuki) Wednesday said that the two companies have entered into an agreement regarding a capital alliance today, in order to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including the field of autonomous driving.

“In order to develop and promote a long-term partnership between the two companies, the companies plan to acquire each other’s shares based on the Alliance”, the companies said in a joint statement.

Toyota plans to acquire 24,000,000 shares of common stock in Suzuki (4.94 per cent 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 by underwriting the disposition of treasury shares by way of third-party allotment conducted by Suzuki. Likewise, Suzuki plans to acquire, through purchase in the market, shares in Toyota equivalent to JPY 48 billion.


These share acquisitions will be implemented after the companies obtain approvals from the foreign competition authorities.