Toyota to take private key unit in $26 billion deal
TOKYO: Toyota Motor will take private a key supplier of its group, it said on Tuesday, in a $26 billion deal, marking a landmark repositioning of Japan's most important corporation.
Under the terms of the deal, unlisted real estate company Toyota Fudosan will launch a tender offer for shares of Toyota Industries for 3.7 trillion yen ($26 billion), the companies said.
Separately, Toyota said it plans to buy back its own shares from Toyota Industries.
Japanese companies have come under growing scrutiny from the market regulator and investors in recent years about their cross-shareholdings in affiliates and business partners, sparking a rise in both management buyouts and acquisitions.
Many of the deals have been driven by expectations that a corporate governance overhaul will bring better shareholder returns.
Toyota Industries to accept Toyota group offer, Kyodo says
Toyota had said in April it was considering participating in a potential buyout of Toyota Industries – a move that sources have said would help improve the group's corporate governance.
Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the world's biggest automaker and more than 5% of Denso, another major Toyota supplier and Toyota group company.
Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.
In addition to forklifts, Toyota Industries manufactures the RAV4 sport utility vehicle for Toyota and also produces car parts such as engines, air-conditioning compressors, batteries and converters.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
10 hours ago
- Business Recorder
Japan 30-year bond auction bid-to-cover ratio 2.92, lowest since December 2023
TOKYO: Demand at a sale of 30-year Japanese government bond yields saw the lowest demand since December 2023 on Thursday. The bid-to-cover ratio, a measure of demand that gauges the number of bids against the amount of securities on offer, fell to 2.921 from 3.074 at the prior sale in May. At the auction in December 2023, the ratio was 2.616. Japan's Ministry of Finance announced the result of the 604.8 billion yen ($4.23 billion) sale at 0335 GMT. Japanese government bond yields retreat after strong 10-year note auction Another gauge of demand called the tail - the difference between the lowest bid and the average bid - was 0.49 yen, compared with 0.30 yen at last month's auction. A longer tail signals less demand.
Business Recorder
11 hours ago
- Business Recorder
Suzuki Motor halted Swift car production due to China's rare earth curb, Nikkei says
TOKYO: Suzuki Motor halted production of its Swift model cars in Japan since May 26 due to China's rare earth restrictions, the Nikkei reported on Thursday. The Japanese automaker had announced the planned production stoppage of the popular model through June 6 but had not given a reason. Pak Suzuki slashes prices on Swift models Suzuki spokesperson was not immediate available for a comment when contacted by Reuters.
Business Recorder
11 hours ago
- Business Recorder
Japanese shares slip on caution over US economic outlook, stronger yen
TOKYO: Japanese shares slipped on Thursday as weak US economic data stoked caution toward the outlook of the world's largest economy, while a stronger yen hurt automakers. At 0134 GMT, the Nikkei was down 0.1% at 37,704.91, having trimmed most of a decline of 0.6% earlier in the session. The broader Topix was down 0.64% at 2,627.17. Overnight, US data showed the smallest gain in private payrolls since March 2023 while the service sector contracted for the first time in about a year. 'The market had not expected to see the weak data out of the US, so now investors have become cautious about Friday's employment report,' said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. 'But the weak economic data means the Federal Reserve may lower interest rates, which is positive for equities. So investors do not have to switch to risk-off mode,' Yasuda said. The US dollar weakened across the board overnight, sending the yen as high as 142.6. The yen was last down 0.1% at 142.89. A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profit in yen terms when repatriated to Japan. Automakers fell, with Toyota Motor and Honda Motor slipping 1.87% and 1.44%, respectively. Overall, automakers and auto parts makers fell 3.8%. Bank shares fell as US Treasury yields declined overnight, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group slipping 1.3% and 1.4%. Japan's Nikkei surges on trade deal hopes lift tech; Toyota Industries slides Chip-related heavyweights rose to track overnight gains in the technology-heavy Nasdaq Composite. Advantest surged 5% and Tokyo Electron rose 3.3%, providing the biggest support to the Nikkei. Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 45% rose, 50% fell and 3% were flat.
