Penske Automotive rallies after accepting a go-private offer

Penske Automotive Group Inc. has announced plans to merge with Motown Acquisition Corp., a vehicle owned by Penske Corporation and Mitsui & Co., Ltd. This merger will result in the company going private, with shareholders, excluding Penske Corporation, Mitsui and other investors, receiving $212.00 per share in cash. The transaction values Penske at approximately $16.3 billion, representing an 8.6% premium to its closing price on July 21, 2026, and an 8.84% premium to the closing price on the day before the announcement.

Upon completion, Penske will own 64% of the company, while Mitsui will hold 36%. The deal is expected to close in the first quarter of 2027, pending regulatory approvals and shareholder approval. The special committee advocating for the transaction comprises independent directors who unanimously recommended it to the board. The company will continue to pay regular quarterly cash dividends, not exceeding $0.02 per share above the last quarterly dividend, and a pro-rated dividend for any partial quarter before closing.