Toyota Motor chairman Akio Toyoda has proposed Y6tn (42bn) deal to acquire its auto parts supplier Toyota Industries, a move that could be marked as a crucial buyout, reported Bloomberg, citing people familiar with the matter.
Following the proposal, Toyota Industries has formed a special committee and hired advisers to examine the offer.
Go deeper with GlobalData
The acquisition would give Toyoda, the grandson of the automaker’s founder, full control over an important firm within the Toyota group.
Toyota Industries manufactures looms for textile looms as well as car engines, electronics, and stamping dies.
Despite Akio Toyoda serving as the chairman of Toyota Motor, he owns less than 1% of the company. In contrast, Toyota Industries holds a 9.1% share in the automaker.
The proposed buyout is expected to enhance Akio’s stake and extend his sway across the entire Toyota group, encompassing suppliers and investments in various enterprises, even including competing automobile manufacturers, reported the media outlet.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIf the deal proceeds, it will be funded through Toyoda’s personal investment and loans from Japanese banks.
The proposed Y6tn offer represents a 40% premium over Toyota Industries’ market capitalisation at the close of 25 April 2025, according to a source.
Toyota Motor stated that it is considering various possibilities, including partial investment, but no decisions have been made.
In an emailed statement to the media outlet, the company said it is evaluating all possibilities, including capital policies, to boost the group’s corporate value, but no decisions have been finalised.
Japan has experienced an increase in management buyouts and company takeovers, fuelled by hopes of improved shareholder returns from corporate governance reforms and an economic rebound after prolonged deflation.
Nonetheless, some transactions have faltered. The founding family of the retail giant Seven & i Holdings (3382.T) had to abandon their $58bn management buyout proposal for the firm in February due to their inability to obtain the necessary financing for the acquisition, reported Reuters.
In January, Toyota Motor Europe partnered with Hydrogen Refuelling Solutions (HRS) and Engie to develop next-generation hydrogen refuelling systems.
These systems aim to be faster and more cost-efficient, supporting the EU’s goal to accelerate hydrogen infrastructure deployment.
