Toyota chairman eyes $42bn takeover of Toyota Industries
By Temitope Adebayo
In a major corporate development likely to reshape the global automotive landscape, the Chairman of Toyota Motor Corporation, Akio Toyoda, has proposed a monumental 6 trillion yen ($42 billion) acquisition of Toyota Industries Corporation, according to Bloomberg News.
The proposed buyout marks a historic move for Japan’s corporate sector and could significantly consolidate control within the Toyota conglomerate, one of the most influential corporate groups in Asia. Toyota Industries, a key supplier and long-standing member of the Toyota Group, is currently evaluating the proposal through a specially formed committee and with guidance from financial advisers.
Founded as a textile machinery company, Toyota Industries holds a deep symbolic value within the Toyota ecosystem. It was from this very company that Toyota Motor, now the world’s largest carmaker by sales, emerged. Today, Toyota Industries produces textile machines, car engines, electronics, and key automotive parts, reinforcing its strategic importance.
If successful, the acquisition would give Akio Toyoda, grandson of the company’s founder, full control of a firm foundational to Toyota’s history.
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Bloomberg reports that the proposed deal would be funded by Toyoda’s investment alongside loans from Japan’s major banking institutions, often referred to as “megabanks.” The offer is said to represent a 40% premium over Toyota Industries’ share price as of Friday’s market close, according to LSEG data.
This development comes amidst a rising wave of corporate acquisitions and management buyouts in Japan, driven by reforms in corporate governance and improved investor confidence following years of deflation. Analysts say the Toyota deal could signal stronger shareholder engagement and greater strategic consolidation within Japan’s industrial giants.
However, recent failed high-profile buyouts, such as the abandoned $58 billion management-led bid for retail giant Seven & i Holdings, raise concerns about the hurdles such massive transactions may face, particularly in terms of financing and regulatory approval.
For Nigerian investors and stakeholders in the automotive supply chain, this potential acquisition is worth monitoring, especially as it could influence global production strategies, parts supply dynamics, and long-term investment opportunities in the auto industry.
Toyota Motor and Toyota Industries have yet to issue an official statement as of press time.
