Toyota Explores $42 Billion Investment in Toyota Industries

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3 days ago

Toyota Motor Corporation is considering a potential investment in acquiring key component supplier Toyota Industries. Reports suggest that this acquisition could cost around $42 billion. Following these reports, Toyota filed a document with the Tokyo Stock Exchange stating that they are exploring various possibilities, including partial investment.

Media sources indicated that Toyota's chairman, Akio Toyoda, along with the founding family, proposed acquiring Toyota Industries, with the transaction potentially reaching 6 trillion yen ($42 billion). Toyota Industries, with a market value of 4 trillion yen, confirmed receiving a proposal for privatization through a special purpose company but denied any acquisition proposal from Akio Toyoda or the Toyota Group.

Insiders revealed that Toyota Industries is considering seeking acquisition funding from Toyota Motor, group companies, and major banks. They clarified that the proposal did not originate from Akio Toyoda or the Toyota Group. Privatizing Toyota Industries could enhance Toyota Group's corporate governance by eliminating cross-shareholdings. Both Toyota Motor and Toyota Industries stated that no decisions have been made yet.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.