Toyota and Suzuki have solidified their technical alliance plans, as part of which the two will engineer solutions for autonomous driving. Following several years of discussions, on March 20 this year, the auto makers announced that they would begin the important considerations required to successfully develop joint products, take them into production and promote the mutual supply of these products. They will do so by bringing together Toyota’s strength in electrification technologies and Suzuki’s knowledge in compact vehicles.
In order to support an alliance, Toyota will acquire 24,000,000 shares of common stock in Suzuki (4.94% ownership of the total number of shares issued by Suzuki as of March 31, 2019, excluding treasury shares) at a total value of JPY96bn (US$903m), by underwriting the disposition of treasury shares by way of third-party allotment conducted by Suzuki. Suzuki will acquire, through purchase in the market, shares in Toyota equivalent to JPY 48bn (US$452m).These share acquisitions will be implemented after the companies obtain approvals from the foreign competition authorities.