-- Toyota Motor Corp. said Friday it has bought shares for 35.9 billion yen in the two insurers that will merge April 1 to form Aioi Insurance Co.
The purchase is aimed at giving the automaker a minority controlling stake in Aioi, to be created through the merger of Chiyoda Fire & Marine Insurance Co. and Dai-Tokyo Fire & Marine Insurance Co.
Toyota plans to use Aioi as a key player in its financial service business that includes automobile insurance.
With Chiyoda and Dai-Tokyo listed on the first section of the Tokyo Stock Exchange, Toyota purchased 20 million Chiyoda shares and just over 78.48 million Dai-Tokyo shares in off-hour trading at their closing prices of 344 yen and 370 yen, respectively, in the day's morning session.
Through these purchases, Toyota has raised its stake in Chiyoda to 49.9 percent from 44.7 percent and acquired a 19.3 percent interest in Dai-Tokyo.
The stakes in the two non-life insurance companies will give Toyota a 33.4 percent share of Aioi, allowing the automaker to veto key decisions at the new nonlife insurer's shareholders' meetings.