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Toyota to boost Subaru stake to more than 20%: sources via SABCNewsOnline

The deal is due to be approved at a Toyota board meeting on Friday, the people said, declining to be identified because the information has not been made public.

Toyota’s investment is likely to cost more than 70 billion yen based on Subaru’s stock market value, said the Nikkei business daily, which first reported the news. “The plan appears to be to ultimately make Subaru a fully owned subsidiary, to help create a ‘mega Toyota’. This is the first step towards that,” said Takeshi Miyao, managing director of Carnorama, a consultancy.Subaru is particularly strong in sport-utility vehicles and all-wheel-drive technology. The two automakers in June said they planned to jointly develop an electric sport-utility vehicle on a platform produced together, to split costs.

 

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