Toyota to take 5.9 percent stake in Isuzu
James B. Treece
TOKYO -- Toyota Motor Corp. will buy 5.9 percent of truck maker Isuzu Motors Ltd., the automaker said today.
Toyota will buy 100 million shares of Isuzu stock. At a trading price today of 415 yen, or $3.52 per share, the deal is worth $352.4 million.
The tie-up is taking place for the companies to cooperate on engine technologies, Toyota said in a press release. A press conference is scheduled for later today in Tokyo.
Toyota said Isuzu will take the lead in development and production of small diesel engines and diesel emission control technologies. Toyota will take the lead in environmental technologies for gasoline engines and alternative fuels.
The stock purchase is set to take place on Friday, Nov. 10. Toyota will buy the Isuzu stock from trading houses Mitsubishi Corp. and Itochu Corp.
The deal is another example of Toyota linking up with an automaker that was cast off by General Motors.
GM sold its remained 7.9 percent ownership of Isuzu in April, after having held partial ownership of Isuzu since 1971. In a move to raise cash, GM sold
90 million shares of Isuzu stock to Mitsubishi Corp., Itochu Corp. and Mizuho Corporate Bank for about $300 million.
In October 2005, Toyota linked up with Fuji Heavy Industries, the maker of Subaru cars, by buying an 8.7 percent stake in Fuji from GM for about $315 million. Toyota has since said it will use the Subaru plant in Indiana to build Camrys.
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