Penske to Go Private in $16 Billion Deal
Penske Automotive Group has entered into a definitive merger agreement to be taken private by its two largest shareholders, Penske Corp. and Mitsui & Co., in a transaction valued at approximately $16.3 billion. The move signifies the conversion of a nonbinding proposal submitted in July into a signed deal.
Under the agreement, minority shareholders will receive $212 per share in cash, representing an 8.84% premium to the October 14 closing price, plus a roughly 26% premium to the 90-day volume weighted average price prior to the July proposal. Upon closing, Penske Corp. will hold approximately 64% of the privately held company and Mitsui approximately 36%, all according to a release.
“This transaction marks an important next chapter for PAG,” writes Roger Penske, the group’s chairman and CEO. “Mitsui has been a shareholder for 25 years, and we have had a productive relationship over the past quarter-century. Together with Mitsui, we will build on PAG’s operational excellence and draw on our combined capabilities and networks to drive innovation and expand PAG’s business through new opportunities and collaborative projects.”
The transaction was unanimously recommended by a special committee of independent directors advised by Moelis & Company and Paul, Weiss, Rifkind, Wharton & Garrison. The deal is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals.
Executives note the group’s Q3 2026 financial results are expected October 28, though the company will not host an earnings call in light of the announced transaction.
