Toyota Motor Chairman Akio Toyoda Launches $33B Bid to Privatize Toyota Industries

Toyota Motor Corp., led by Chairman Akio Toyoda, is launching a $33 billion bid to take Toyota Industries Corp. private, aiming to consolidate control over the Toyota business empire and simplify its corporate structure. The tender offer values Toyota Industries shares at an 11% discount to their recent closing price, a move that has drawn criticism from investors who feel the company is undervalued. The privatization will dissolve cross-shareholdings between Toyota Industries and key group firms such as Toyota Motor, Aisin, Denso, and Toyota Tsusho, aligning with Japanese government reforms promoting clearer corporate governance. The acquisition will be financed through loans from major banks, equity investments from Toyota Motor, and contributions from the Toyoda family’s investment arm, Toyota Fudosan. This restructuring is intended to strengthen operational unity and long-term growth, enabling Toyota Industries to focus on goods transportation while Toyota Motor evolves into a broader mobility company. Shareholders are expected to vote on the tender offer by December 2025.