Toyota Industries Corp. has received a $33 billion proposal to go private, a move that could increase the influence of the Toyoda family within Japan’s largest corporate group.
The bid, which would be one of the largest global buyouts to date, involves a tender offer at ¥16,300 per share, 11% below the company’s last closing price.
A new holding company will be formed to execute the deal, backed by Toyota Motor, group suppliers, and Toyoda family-linked entities.
Toyota Motor will contribute ¥700 billion via preferred shares, with chairman Akio Toyoda personally investing ¥1 billion.
The transaction aims to unwind long-criticised cross-shareholdings within the Toyota group, in line with Japan’s push for better corporate governance.
The deal would also dissolve share links between Toyota Industries and affiliates like Denso and Aisin.
A formal offer could be launched by November, pending evaluation by an independent board committee.
Toyota Industries and Toyota Motor have a long-shared history dating back nearly a century.
The former was founded in 1926 by Sakichi Toyoda to manufacture automatic looms, while the latter was spun out in 1937 by his son Kiichiro Toyoda to pursue automotive production.
In a very real sense, Toyota Motor, now the world’s largest carmaker, owes its existence to Toyota Industries, which funded its creation and remains closely linked through business and family ties.
Today, the two companies operate independently but remain strategically connected.
Toyota Motor owns just over 24% of Toyota Industries, while Toyota Industries supplies a range of components for Toyota vehicles, including air-conditioning systems, engines, and compressors.