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Toyota's Akio Toyoda Proposes $42 Billion Buyout of Toyota Industries at 40% Premium

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Updated Apr 29, 2025, 06:28 AM

Toyota Motor Corp. is considering a potential $42 billion (6 trillion yen) buyout of Toyota Industries Corp., a key supplier and a foundational company within the Toyota Group. The proposed deal, led by Toyota Chairman Akio Toyoda, would see Toyota and its group companies, along with major banks, secure funding for the acquisition. Toyota Industries, which manufactures textile looms and automotive parts, has a market value of $28 billion.

The buyout proposal, which represents a roughly 40% premium over Toyota Industries' current market value, has sparked significant interest in the market. Shares of Toyota Industries were poised to soar, with expectations of hitting the daily upper limit of 16,225 yen, a 23% increase from the previous close. This move could be the largest one-day gain for Toyota Industries in over 40 years, and its stock hit a record high.

The potential buyout has broader implications for Japan's corporate landscape, as it may challenge ongoing efforts to enhance shareholder accountability and reduce cross-shareholdings. Investors are closely watching the developments, as the deal could influence corporate governance within Japan's largest business group and potentially trigger similar moves in other companies. Meanwhile, Toyota's stock rose 3.5% following the news.

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