Toyota Plans $42 Billion Buyout of Toyota Industries

Toyota is considering options, including a potential $42 billion buyout of its key supplier Toyota Industries, as confirmed in recent filings and statements. While Toyota Industries has acknowledged receiving proposals about going private, it denies any direct buyout offer from Toyota chairman Akio Toyoda or the Toyota group. The deal, if pursued, would be funded through personal investments by Akio Toyoda and loans from Japanese banks, and reportedly values Toyota Industries at a 40% premium over its current market capitalization. Privatizing Toyota Industries is seen as a move to improve corporate governance within the Toyota group by dismantling complex cross-shareholding arrangements, a practice under increasing scrutiny in Japan. Both Toyota and Toyota Industries emphasize that no final decisions have been made, and exploratory discussions continue. Such a buyout could provide Toyota Industries with greater operational independence while potentially increasing Akio Toyoda's influence across the group.