Roger Penske is moving away from the circuits considerably.
Penske Automotive Group, the publicly traded dealership company chaired by the legendary NASCAR team owner, announced Thursday (Oct. 15) that it had agreed to a $16.3 billion deal that would strip the company of its capital.
The deal involves Penske Corporation and Japanese trading company Mitsui & Co., which already own a majority of the auto retailer. Together, they plan to purchase the remaining shares and terminate the company’s listing on the New York Stock Exchange.
For NASCAR fans, there’s an important distinction: This is a deal involving Penske’s auto retail business, not Team Penske or its other racing properties.
Roger Penske’s $16.3 billion deal: What we know
Under the terms of the deal, shareholders outside the purchasing group will receive $212 per share in cash, up from $210 initially proposed in July.
The offer represents an 8.84% premium to Penske Automotive Group’s closing stock price on Wednesday. The $16.3 billion figure represents the company’s total value, including debt, rather than the amount paid for outstanding shares.
Upon completion of the transaction, Penske Corporation is expected to own approximately 64% of Penske Automotive Group, with Mitsui holding the remaining 36%.
The deal received approval from the company’s board of directors following a unanimous recommendation from a special committee comprised of independent directors.
“This transaction marks an important next chapter for PAG,” Penske said in the company’s announcement.
He also highlighted the company’s 25-year relationship with Mitsui and their plans to continue the company’s growth together.
The transaction is expected to close in the first quarter of 2027, pending shareholder and regulatory approvals.
What does the Penske buyout mean for NASCAR?
The Penske name is associated with some of the biggest operations in American motorsports, making Thursday’s announcement particularly noteworthy.
But Penske Automotive Group is a separate company from Team Penske, which competes in NASCAR and IndyCar racing, and Penske Entertainment, which owns the Indianapolis Motor Speedway and IndyCar.
Neither racing operation is part of the announced transaction.
Penske Automotive Group operates commercial automobile and truck dealerships in several international markets. Going private would change its ownership structure and remove the company from public stock trading, but that doesn’t mean Penske is selling its racing teams.
The deal is also not finalized. Companies still have several steps to complete before the planned closure in 2027.
For now, the announcement marks a significant change in how one of Penske’s largest businesses will operate, while its racing empire remains out of the deal.
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