Toyota is in plans to purchase additional shares of Subaru to raise its stake to over 20% from around 17% today. Subaru in kind will also invest back in Toyota via a similar stock purchase of Toyota. If the deal is approved by Toyota's board, it is a step towards making Subaru a whole owned subsidiary that would create a 'Mega Toyota'. Toyota recently announced a similar purchase of Suzuki shares to form a new alliance for the Indian market.
Toyota and Subaru have worked together before on projects such as the Subaru BRZ / Toyota 86 and Subaru for a time built Toyota Camrys at its plant in Indiana.
Toyota sees Subaru as being strong in sport utility vehicles and in all-wheel drive technology. Toyota and Subaru have also announced plans to jointly build a platform for an electric SUV.