Suzuki and Toyota have entered into a new ‘capital alliance’ agreement with the aim of establishing and promoting collaboration in new fields – specifically autonomous vehicles.
The two companies intend to achieve sustainable growth by engaging in joint product development and collaboration in production, as well as promoting the mutual supply of products, by bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles.
In order to develop and promote a long-term partnership, the two companies plan to acquire each other’s shares based on the alliance.
Toyota plans to 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) with a total value of JPY 96bn (US$900m) – by underwriting the disposition of treasury shares by way of third-party allotment conducted by Suzuki.
Likewise, Suzuki plans to acquire, through purchase in the market, shares in Toyota equivalent to JPY 48bn (US$450m).
These share acquisitions will be implemented after the companies obtain approvals from the foreign competition authorities.
Want to hear more about Toyota’s activities in the AV space? Hear John Gersch, managing counsel at Toyota Legal One, speak at the ADAS & AV Legal Issues & Liabilities World Congress. Visit the event web page for full details, rates and how to book. The congress is held at Autonomous Vehicle Technology Expo, held in Novi, Michigan on 22, 23 and 24 October 2019.