Toyota poised to purchase Daihatsu

Toyota is poised to purchase Daihatsu Motors in a deal believed to be worth around $3 billion.

Reuters are reporting that cars will still be sold under the Daihatsu brand, which will become a wholly owned subsidiary of Toyota.

Toyota currently owns 51.2% of Daihatsu. Speculation of a full buyout of the remaining shares surfaced last week.

The agreement is intended to develop cars through a unified strategy for the small car market, although both companies will be engage in what Toyota describe as ‘friendly competition’ and maintain separate management.

Toyota also intends for collaborations with Daihatsu on developing new technology and on entry into new business areas.