Roger Penske once had to choose between pursuing a career behind the wheel and building a business of his own. He chose business, buying a Chevrolet dealership in 1965 and laying the foundation for an empire that would eventually stretch across automotive retail, transportation, and motorsports. Decades later, the NASCAR titan is making another landmark move, one that could reshape a major part of that empire. Penske Automotive Group’s $16.3 billion take-private deal marks a dramatic turn for a company that has traded on the NYSE since 1996.
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Penske Automotive Group announced on October 15 that it had entered 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 an 8.84% premium over the October 14 closing price. Once the deal closes, Penske Corporation is expected to own about 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 approvals. The company’s independent special committee recommended the agreement after evaluating the proposal and its alternatives.
The decision also comes down to ownership and shareholder value. Penske Corporation and Mitsui already held a controlling interest in PAG, making the agreement 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 for minority shareholders.
Going private could also give PAG greater flexibility to pursue long-term investments without the same public-market reporting requirements, although the company has not identified that as a specific reason for the deal.
Roger Penske described the transaction as a significant step in the company’s future. “I want 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 had a productive relationship over the past quarter-century. Together with Mitsui, we will build on PAG’s operational excellence and draw on our combined capabilities and networks to drive innovation and expand PAG’s business through new opportunities and collaborative projects.”
Penske Automotive Group’s history as a public company stretches back three decades. Founded in 1990 as United Auto Group, the business went public in October 1996, listing its shares on the New York Stock Exchange under the ticker UAG. Penske Corporation took control in 1999, and the company adopted the Penske Automotive Group name in 2007, changing its ticker to PAG. The proposed take-private deal would end nearly 30 years of public-market history.
Today, PAG is far more than a collection of American car dealerships. Headquartered in Bloomfield Hills, Michigan, it operates automotive dealerships across the United States, United Kingdom, Canada, Germany, Italy, Japan and Australia. Its businesses also include commercial truck retailing, vehicle distribution, engines, power systems, parts and services. PAG additionally holds a 28.9% stake in Penske Transportation Solutions, which manages a large fleet of trucks, tractors and trailers. The company reported employing more than 28,900 people worldwide in its October announcement.
The scale helps explain why the agreement matters beyond the stock market. Penske is bringing a major international business under private ownership alongside a partner with which he has worked for a quarter-century. Mitsui said the partnership would help sustain operational performance while supporting innovation and business development as the automotive industry undergoes technological change.
For NASCAR fans, Penske’s automotive deal is another reminder that his career began with a choice between racing and business. He was a successful driver before turning his attention to the automotive industry. In a NASCAR.com retrospective, Penske recalled the decision to work for Philadelphia Chevrolet dealer George McKean, explaining that he hoped to own the business within a couple of years. He purchased the dealership in 1965 with financial help from his father, then expanded into truck leasing and transportation services.
His racing operation, meanwhile, first competed in NASCAR in 1972, stepped away after 1977 and returned to the Cup Series in 1991. Team Penske eventually captured its first Cup Series championship with Brad Keselowski in 2012. Joey Logano and Ryan Blaney added championships in 2018, 2022, 2023, and 2024, helping establish the organization as a modern NASCAR powerhouse.
The distinction matters: this agreement concerns Penske Automotive Group, not Team Penske or NASCAR itself. But both reflect the same long-term approach to building organizations, developing partnerships and expanding across industries.
Penske’s latest move is therefore more than a financial headline. It brings a publicly traded business that began as United Auto Group back under private ownership, with Mitsui remaining a major partner. If completed as planned, the deal will close one chapter in PAG’s stock-market history while giving Penske and Mitsui greater control over its next phase of growth.