Monday, April 28, 2025
By Kamal Swami
Toyota Motor Explores $42 Billion Buyout of Toyota Industries
It is reported that the Japanese auto giant Toyota Motor Corp. is exploring the possibility of investing in a potential buyout of key supplier Toyota Industries Corp. If this happens, it will cost $42 billion to the Japanese car maker.
In a filing with the Tokyo Stock Exchange, Toyota said, "We are currently exploring various possibilities, including partial investment”. According to sources, Toyota Chairman Akio Toyoda and his founding family have proposed to acquire Toyota Industries by making a payment of approximately 6 trillion yen ($42 billion). Toyota Industries, which currently holds a market value of around 4 trillion yen, has confirmed that it has received proposals about going private through a special purpose company. However, the group also denied receiving any buyout offer from Toyota Chairman Akio Toyoda or the Toyota group.
According to the sources related to the matter, Toyota Industries is finding the possibilities of getting funds from Toyota, its group companies, and major banks to support a potential buyout. The group has also confirmed that it has not yet received any proposal for a buyout from Akio Toyoda or any of Toyota’s initiatives groups. Industry experts believe privatizing Toyota Industries privately could help the Toyota group improve its corporate governance by unlocking the problem of cross-shareholdings. Both Toyota Motor and Toyota Industries stated that no final decision had been made.
Founded in 1926 as Toyoda Automatic Loom Works by Sakichi Toyoda, Toyota Industries originally manufactured automatic looms before stepping into the business of automotive manufacturing. Today, it remains a major forklift manufacturer and produces vehicles like the RAV4 SUV and engines for Toyota Motor.
