Toyota's $40.5B Buyout of Toyota Industries Faces Regulatory Delays Amid Antitrust Reviews

Toyota Motor's plan to acquire its subsidiary, Toyota Industries, for approximately $31 billion has been delayed due to prolonged antitrust regulatory reviews in multiple countries, postponing the tender offer launch to at least February 2026. The buyout, led by Toyota Fudosan, a real estate unit affiliated with the Toyoda family, aims to consolidate family control and simplify the complex corporate structure of Japan's largest business group, aligning with government efforts to unwind cross-shareholdings. While clearances have been granted in Australia, Canada, Israel, and South Africa, other jurisdictions remain pending, causing the delay. The proposed tender offer price of ¥16,300 per share represents an 11% discount compared to Toyota Industries' closing price at announcement, prompting criticism from some minority and institutional investors who argue the offer undervalues the company's assets. Financing for the deal includes ¥2.8 trillion from major Japanese banks, with Toyota Chairman Akio Toyoda personally investing ¥1 billion. As a result of the delay, Toyota Motor's own share repurchase plan has also been pushed back to March 2026 or later, pending board approval.