Toyota raises stake in Subaru's parent

TOKYO -- Fuji Heavy Industries said Friday it plans to sell shares worth $293 million to Toyota Motor, boosting the Japanese automaker's stake in the maker of Subaru cars to nearly 17%.

Fuji Heavy said in a statement it will sell 61 million shares worth 31.1 billion yen ($293 million) to Toyota, Japan's largest automaker.

Toyota, already Fuji Heavy's top shareholder, will raise its stake in the company to 16.6% from the current 9.5%. Toyota's payment is expected to be completed by July 14.

U.S. automaker General Motors once was the top shareholder in Fuji, but sold its entire 20% stake in 2005 as part of its efforts to raise cash.

Toyota, challenging GM as the world's biggest automaker, bought an 8.7% stake in Fuji for about $315 million to become the top shareholder.

The latest move is symbolic of a global industry shift as cash-rich Toyota takes over what GM has abandoned.

In 2006, Toyota also bought a significant stake in another GM's former Japanese alliance partner — truckmaker Isuzu.

Toyota had announced its intention to raise its stake in Subaru earlier this year.