Roger Penske had to choose between pursuing a career behind the wheel and starting his own business. He went into business, purchasing a Chevrolet dealership in 1965 and laying the foundation for an empire that would eventually expand into automobile retailing, transportation and motorsports. Decades later, the NASCAR titan makes another historic decision, one that could reshape much of that empire. The $16.3 billion take-private transaction of Penske Automotive Group marks a dramatic turning point for a company that has been listed on the NYSE since 1996.
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Penske Automotive Group announced Oct. 15 that it has entered into a merger agreement with Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co. The buyers will pay $212 in cash for each eligible share they do not already own, valuing the company at an enterprise value of approximately $16.3 billion, including debt. The offer represents a premium of 8.84% to the October 14 closing price. Upon completion of the transaction, Penske Corporation is expected to own approximately 64% of PAG, with Mitsui holding the remaining 36%.
The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approval. The company’s independent special committee recommended the deal after evaluating the proposal and its alternatives.
The decision also depends on ownership and shareholder value. Penske Corporation and Mitsui already owned a majority stake in PAG, making this deal a way to consolidate their position and buy out the remaining public shareholders. The company’s independent special committee evaluated the offer against the alternative of remaining publicly traded and concluded that the transaction provided the greatest value to minority shareholders.
Privatization could also give PAG greater flexibility to pursue long-term investments without the same reporting requirements in the public market, although the company has not identified this as a specific reason for the deal.
Roger Penske described the transaction as an important step for the company’s future. “I would like to thank the special committee for its thoughtful and diligent evaluation of the transaction,” he said. “This transaction marks an important next chapter for PAG. Mitsui has been a shareholder for 25 years and we have enjoyed a productive relationship over the past quarter century. With Mitsui, we will build on PAG’s operational excellence and leverage our combined capabilities and networks to drive innovation and grow PAG’s business through new opportunities and collaborative projects.”
Penske Automotive Group’s history as a public company dates back three decades. Founded in 1990 as United Auto Group, the company went public in October 1996, listing its shares on the New York Stock Exchange under the symbol UAG. Penske Corporation took control in 1999, and the company adopted the name Penske Automotive Group in 2007, changing its symbol to PAG. The proposed privatization deal would end nearly 30 years of public procurement history.
Today, PAG is much more than a collection of American automobile dealerships. Headquartered in Bloomfield Hills, Michigan, it operates automobile dealerships in the United States, United Kingdom, Canada, Germany, Italy, Japan and Australia. Its operations also include commercial truck retailing, distribution of vehicles, engines, electrical systems, parts and services. PAG additionally owns a 28.9% stake in Penske Transportation Solutions, which operates a large fleet of trucks, tractors and trailers. The company said it employs more than 28,900 people worldwide in its October announcement.
The scale helps explain why the deal matters beyond the stock market. Penske is placing a major international company under private ownership alongside a partner it has worked with for a quarter century. Mitsui said the partnership would help maintain operational performance while supporting innovation and business development as the automotive industry undergoes technological changes.
For NASCAR fans, Penske’s car deal is another reminder that his career began with a choice between racing and business. He was a successful driver before turning to the automobile industry. In a NASCAR.com retrospective, Penske recalled the decision to work for Philadelphia Chevrolet dealership George McKean, explaining that he hoped to own the company within a few years. He purchased the dealership in 1965 with financial help from his father, then moved into the truck rental and transportation services business.
In the meantime, its racing activity first competed in NASCAR in 1972, retired after 1977, and returned to the Cup Series in 1991. Team Penske finally won its first Cup Series championship with Brad Keselowski in 2012. Joey Logano and Ryan Blaney added championships in 2018, 2022, 2023, and 2024, contributing to make the organization a modern NASCAR powerhouse.
The distinction is important: This deal involves Penske Automotive Group, not Team Penske or NASCAR itself. But both reflect the same long-term approach to building organizations, developing partnerships and growing across all sectors.
So Penske’s latest move is more than just a financial headline. This brings a publicly traded company that started as United Auto Group back under private ownership, with Mitsui remaining a major partner. If completed as planned, the transaction will close a chapter in PAG’s stock history while giving Penske and Mitsui greater control over its next phase of growth.
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