Toyota to buy out rest of Daihatsu for $3 billion
The companies intend to develop Daihatsu into a global brand as they focus on growing markets for compact cars, noting that entry-level car markets were expanding due to economic development and that vehicles were becoming smaller due to environmental and traffic concerns.
Acquiring full control of Daihatsu, of which Toyota currently owns 51.2 percent, will allow it to better leverage the lower-cost brand and enable Daihatsu to more easily adopt next-generation technologies developed by Toyota.
"We see this as the perfect opportunity to cement our relationship with Toyota, and, by doing so, to embark on a new period of growth, and to elevate the Daihatsu brand to a global standard," Daihatsu said in a statement.
Toyota will acquire the remaining Daihatsu shares by swapping 0.26 of its own shares for each Daihatsu share. Daihatsu shares will be delisted after July 26.
Daihatsu specialises in 660 cc vehicles and produces models including the Mira and the Cast, while also supplying car bodies and engines to Toyota and Fuji Heavy Industries. ■