Friday, June 27, 2008

Toyota to Increase its Share in Fuji Heavy Industries

Toyota is going to increase its share in Fuji Heavy Industries Ltd. as it is expected to buy 61 million shares of Fuji Heavy Industries Ltd., the maker of Subaru Car. In a statement, Fuji Heavy recently declared that it would sell shares worth $300 million (31.1 billion yen) to Toyota, by which Toyota’s stake in Fuji Heavy will be increased to 16.6 percent from current stake 9.5 percent.

As per this deal, Toyota will be able to raise its stake in Fuji’s Subaru car division. You know that Toyota is one of the leading car makers in the world and is in a stiff competition with General Motors in the race to become world’s largest car maker by the end of this year. Subaru has some strong presence in some of the markets. So, I think, it could be a boost for Toyota in holding more market share globally.

Related article:

businessweek

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