Toyota Industries board to discuss US$42bil buyout
Simon Humphries, Toyota Motor Member of the Board, Chief Branding Officer attends the world premiere of the all-new RAV4 SUV unveiling where Akio Toyoda, Chairman is displayed on the screen, in Tokyo, Japan May 21, 2025. Although Akio is chairman of the world's No. 1 carmaker, his direct ownership stands at less than one per cent, while Toyota Industries has a 9.1 per cent stake in the manufacturer. - Reuters
TOKYO: Toyota Industries Corp. said its board will evaluate a buyout proposal Tuesday (June 3) that will take the company private, a move that will strengthen the founding family's grip over Japan's biggest business empire.
A group led by Toyota Motor Corp. Chairman Akio Toyoda is seeking to acquire the subsidiary for ¥6 trillion ($42 billion), people familiar with the matter said last month. Toyota Industries issued a statement on Tuesday in response to reports that the deal will be announced, saying that no specific decisions have been made public.
A deal, which would rank among the biggest buyouts on record anywhere, would resolve a parent-child structure that has been criticised in the past and also be in line with the Japanese government's efforts to encourage big companies to unwind cross-held shares with subsidiaries and other businesses. At the same time, a takeover may give Toyoda greater influence over the carmaker founded by his grandfather.
"This matter is scheduled to be discussed at its board of directors meeting to be held today, and the decision made will be promptly disclosed,' Toyota Industries said in the statement.
Toyoda will put in a personal investment of his own, as will Toyota Motor, according to the people. Although Akio is chairman of the world's No. 1 carmaker, his direct ownership stands at less than one per cent, while Toyota Industries has a 9.1 per cent stake in the manufacturer.
Shares in Toyota Industries rose less than one per cent in early morning trading in Tokyo on Tuesday. The stock is up more than 40 per cent since Bloomberg first reported the takeover proposal on April 25.
Toyota Industries, the supplier of textile looms, forklifts and parts for Toyota's cars, was founded by Toyoda's great-grandfather Sakichi, whose son Kiichiro went on to found Toyota Motor, which has become the world's biggest carmaker with annual production of more than 11 million vehicles.
The parties involved have picked financial advisers and are working toward a tender offer as soon as November, people familiar with the matter have said. A special board committee, created to evaluate the proposal as per government guidelines, is evaluating the buyout proposal by a special purpose vehicle established by Toyoda.
Toyota Industries will hold its annual shareholder meeting on June 10, while Toyota Motor's will take place two days later.
There's a complex web of cross-shareholdings among Toyota group companies with Toyota Motor holding 24.2 per cent of Toyota Industries' shares, while Toyota Fudosan Co., a private real estate developer chaired by Toyoda, owns 5.32 per cent of the supplier.
Japan is accelerating efforts to unwind such arrangements among companies, aiming to improve corporate governance, enhance transparency and boost shareholder returns.
Toyoda's buyout plan comes as Toyota seeks to rebuild trust in its governance after a series of regulatory scandals were uncovered at a pair of subsidiaries that included Toyota Industries. - Bloomberg
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
5 hours ago
- The Star
Japan trade negotiator Akazawa says he made progress in US tariff talks
The latest round of talks may be the last in-person meeting between Japanese and US officials before the upcoming Group of Seven leaders summit. - Photo: Reuters TOKYO: Japan had made some progress in a fifth round of trade talks with US officials aimed at ending tariffs that are hurting Japan's economy, Tokyo's chief tariff negotiator said. "Tariffs have already been imposed on autos, auto parts, steel and aluminum, and some of them have doubled to 50% along with 10% general tariff. These are causing daily losses to Japan's economy," Ryosei Akazawa, said in Washington on Friday (June 6) after talks with officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Akazawa declined to say what progress they had made. The latest round of talks may be the last in-person meeting between senior Japanese and US officials before the Group of Seven (G7) leaders summit that starts on June 15, where US President Donald Trump is expected to meet Japanese Prime Minister Shigeru Ishiba. Japan also faces a 24% tariff rate starting in July unless it can negotiate a deal with Washington. "We want an agreement as soon as possible. The G7 summit is on our radar, and if our leaders meet, we want to show what progress has been made," Akazawa said. "Still we must balance urgency with a need to guard our national interests," he added. Last month Japan's trade negotiator said US defence equipment purchases, shipbuilding technology collaboration, a revision of automobile import standards and an increase in agricultural imports could be bargaining chips in tariff talks. In a bid to reach an agreement with the United States, Japan is also proposing a mechanism to reduce the auto tariff rate based on how much countries contribute to the US auto industry, the Asahi newspaper reported on Friday. Akazawa said Japan's position has not changed and that the tariffs are not acceptable. - Reuters
The Star
5 hours ago
- The Star
Yageo says it will protect technology if Shibaura purchase succeeds
Yageo's founder and Chairman Pierre Chen speaks at the company's headquarters in New Taipei City, Taiwan June 7, 2025. REUTERS/Wen-Yee Lee TAIPEI/TOKYO (Reuters) -Taiwan's Yageo said it will implement strict controls to prevent technology from leaking if it succeeds in acquiring Japan's Shibaura Electronics, responding to concerns in Japan over what the deal could mean for national security. Chairman Pierre Chen told reporters in Taipei on Saturday that the company will meet with Shibaura in mid-June in Tokyo to discuss potential cooperation. Yageo, the world's largest maker of chip resistors, launched an unsolicited tender offer for Shibaura in February, seeking full control of the Japanese firm, which specialises in thermistor technology. Yageo offered to buy Shibaura at 4,300 yen per share, valuing the company at more than 65 billion yen ($450 million). Spurning Yageo's overture, Shibaura tapped Japanese components supplier Minebea Mitsumi as a white knight. Minebea and Yageo entered a bidding war, with the latter now offering 6,200 yen. The stock closed at 6,100 yen on Friday. "Our strategy is to inject resources and strengthen R&D for advanced technologies. We're also preparing to make larger investments to expand their facilities in Japan," Chen said. Asked about Japan's national security concerns, he said: "We will implement strict controls to ensure technology does not leak." Unsolicited takeovers were once rare in Japan, where companies often mounted elaborate defences. The Japanese industry ministry's M&A guidelines in 2023 cracked down on what it considered excessive defence tactics, de-stigmatising unsolicited buyouts and leading some of such deals to succeed. Chen said that negotiations with Japan's Ministry of Economy, Trade and Industry had been going smoothly. He said that if Yageo acquires Shibaura, the deal would address a gap in its portfolio of thermistors, making Yageo's offerings more complete for global customers and helping Shibaura expand its access to markets outside of Japan. Yageo said it aims to ease the burden of managing smaller component suppliers for its major clients, including Apple and Nvidia, by offering more comprehensive product portfolios and solutions. Yageo is also the world's number three manufacturers of multilayer ceramic capacitors and provides key components used in Apple's iPhones, Nvidia's AI servers, and Tesla's electric vehicles. ($1 = 144.8500 yen) (Reporting by Wen-Yee Lee in Taipei and Makiko Yamazaki in Tokyo; Editing by William Mallard)
New Straits Times
10 hours ago
- New Straits Times
Ringgit set to extend gains as US fundamentals weaken
KUALA LUMPUR: The ringgit is poised to extend its gains against the US dollar next week, buoyed by weakening US fundamentals, easing trade tensions, and stronger domestic economic resilience. The local currency has already strengthened against major and Asean currencies, and Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the trend is likely to persist as economic momentum in the US continues to lose steam. "We expect this trend to hold in the near term, driven by signs of a slowing US economy as business and consumer sentiment continue to weaken," he told Business Times. Afzanizam added that heightened uncertainty over US trade policies is further dampening confidence among businesses, prompting a reassessment of the greenback's global standing. "In some ways, the US dollar's dominance in the global economy is being revisited. This shift could favour emerging market currencies, including the ringgit, in the short to medium term," he said. Echoing this view, SPI Asset Management managing partner Stephen Innes said that foreign appetite for Malaysian assets remains strong, further supporting the local currency. "The ringgit is finally catching a break. With the US dollar on the back foot, tariffs de-escalating, and capital inflows into bonds and FX deposits rising, there is a tangible floor forming under ringgit," he said. Innes pointed to growing foreign appetite for Malaysian debt, highlighting the 3.3 times bid-to-cover ratio in May's 20-year government investment issue (GII) auction as a signal of revived confidence. He noted that foreign holdings of local government bonds have risen to 21.5 per cent, reversing a dip recorded in February. Adding to the ringgit's resilience, foreign currency deposits in local banks have climbed to a record 11.6 per cent of total deposits, offering a buffer against external shocks. Innes said that while Malaysia is not immune to global economic fragility, it is also not a sitting duck, with the domestic investment cycle now taking the lead. "If the trade war cools and global risk sentiment remains stable, Malaysia may continue to navigate the delicate balance between global volatility and domestic resilience. The ringgit, for once, has a shot at playing offence," he added. The ringgit opened higher this morning, extending its gains against the US dollar. At 8am, it stood at 4.2140/4.2335 compared with Thursday's close of 4.2245/4.2295. The local currency also traded mostly higher against major currencies, gaining ground against the Japanese yen and British pound, though it slipped slightly against the euro. Among regional peers, the ringgit appreciated across most Asean currencies, including the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso. It ended Friday's session at 4.2275 against the greenback.
