(autonews.com) - 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, with Isuzu taking the lead in diesels, Toyota said
In the collaboration, the two companies seek to mutually utilize their management resources in the fields of research & development and production, and to supplement each other's technological development, reports Trend.
Isuzu and TMC have come to view that, while they respect each other's independency in management, each side could prosper further by strengthening their business relationship, as global competition intensifies.
To enable this business collaboration to move forward smoothly, TMC decided today to purchase Isuzu shares as follows:
Parties TMC will purchase from: Mitsubishi Corporation, ITOCHU Corporation
Number of shares TMC will purchase: 100,000,000 shares (60 million from Mitsubishi Corporation; 40 million from ITOCHU Corporation)
