Honda has completed the £300 million purchase of Lexus Financial, the financial arm of the world’s largest luxury car maker.
The Japanese company has agreed to buy Toyota Motor Corp’s automotive business for £300.9 million, which will enable it to invest more than £600 million in Lexus.
The transaction is subject to regulatory approval, according to a statement from the Japanese carmaker.
Toyota and Honda have been working on the deal for several years and the Japanese company will remain an independent player in the car market.
Toyotas investment in Lexuses investment will further expand Lexus’ position in the global luxury car market, the company said in a statement.
Toyoda is a Japanese leader in the luxury car industry and he is also chairman of the company’s board.
The agreement is expected to create an industry-leading financial services company.
Lexus is best known for its compact crossover SUV, the CT200, which was launched in 2008 and sold in the US for more than $180,000.
Honda has also been looking to expand its global presence, with the company also planning to launch a new luxury sports car.
The deal was announced in a joint statement with Toyota, Honda’s parent company, and Lexus Finance.
The company said it will use the funds to invest in the company to create “an environment that maximises shareholder value”.
Toyota has been working closely with Honda and Lexuses management team for years, according a statement on the company website.
“As the world leader in luxury, the Japanese automotive industry has long been our largest shareholder.
Together, we have been instrumental in bringing together our long history in luxury,” said Lexus chief executive Takahiro Masuda.”
Through the acquisition of Lexuses Financial, we will create an environment where the world can enjoy luxury brands that can meet the demands of consumers around the world,” the statement said.
Toyodas investment will help Toyota build its brand in China and expand its market share, as well as further diversify its supply chain.
The announcement comes just a few weeks after Honda and Toyota announced the launch of the new Lexus PHEV in China.
The two companies will also build a new factory in the UK to make the new model.