Toyota Arm Buys Rest of Renewables Firm for $1.5 Billion

(Bloomberg) -- The trading arm of Toyota Motor Corp. will pay 185 billion yen ($1.5 billion) to acquire the remaining stake in a Japanese wind and solar power company amid a nationwide effort to hit ambitious green goals. 

Toyota Tsusho Corp. will acquire the 40% stake it doesn’t already own in Eurus Energy Holdings from Tokyo Electric Power Co., according to a filing Thursday. The deal will close as soon as June. 

The move comes amid a wider green energy buying spree in Japan. The government seeks to cut carbon emissions by 46% from 2013 levels by 2030, and become carbon neutral by 2050. Japan’s industries are in turn committing to similar goals, and facing pressure from the government and investors to move out of fossil fuels.

Toyota Motor owns a 34% stake in Toyota Tsusho, which essentially acts as its trading arm. Japan’s top automaker last year was considering to acquire the 40% stake in Eurus Energy, Diamond Online reported in November.

Eurus Energy develops renewable energy projects around the world, building over 100 projects across 15 countries, according to its website.

(Updates with details throughout.)

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