NEW YORK — Toyota Motor Corp., one of the world’s largest auto makers, said Wednesday it is buying the maker of the popular Lexus luxury sedan and the popular Acura TLX luxury crossover, the first such deal in decades.
Toyota, the world leader in luxury autos, plans to spend more than $10.7 billion, or about $1.85 a share, on the new Lexus and Acura lines in 2021, the company said.
Toyota shares rose 1.3 percent to $98.45 in afternoon trading.
The combined company will be known as Lexus.
Lexus shares rose 2.4 percent to close at $97.72 in New York.
Acura shares climbed 2.9 percent to end up at $37.93 in New Jersey.
Both companies are making big bets on the future of the automotive industry as automakers seek to regain profitability after years of decline.
Toyota and Acurys were among the automakers that lost billions in market value in 2016 and have been seeking to turn around their fortunes as sales slumped in 2017.
They also face an economic downturn in China and a shortage of parts and parts suppliers, which has forced them to invest in new technology and higher labor costs.
They are also trying to improve efficiency, and in the wake of a deadly accident in January in Japan, Toyota and Honda announced they would build an autonomous car.
The automakers will work together to develop new technologies, such as autonomous driving, and share insights and technology.
Toyota will also develop software that will help its self-driving vehicles better navigate traffic and help them spot pedestrians, according to the company.
Acuries chief executive, Hiroshi Yamaguchi, said the company would invest in its core business and add to the research and development.
The new acquisition is expected to be completed by the end of 2021.
Toyota said it plans to sell about $3 billion in new Lexuses and Acuras in 2021.
The deal is expected give Toyota a market share of about 18 percent, up from about 13 percent.
Toyota is trying to make up for lost sales of the older Lexus X series luxury sedan in the United States and the more expensive Acura RL, which is produced in Mexico.