Latest news with #Denso
Zawya
2 days ago
- Automotive
- Zawya
Toyota to take private key unit in $26bln 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 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. ($1 = 142.6500 yen)
CNA
2 days ago
- Automotive
- CNA
Toyota Industries says it will discuss Toyota Group takeover bid on Tuesday
TOKYO :Toyota Industries will decide on Tuesday whether to accept a tender offer to take the company private, it said, after several media reported that it would accept a $42 billion offer from Toyota Motor and other group companies. In a separate statement, Toyota Motor also said it would make a decision on the reported plan, but added that some media reports contained misleading information including that the total acquisition could exceed 6 trillion yen ($42 billion). Toyota Industries shares were little changed on the report, trading up 0.4 per cent while Toyota Motor was down 1.0 per cent. 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 Motor 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 per cent of Toyota Industries as of September last year, while Toyota Industries held around 9 per cent of the world's biggest automaker and more than 5 per cent 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. ($1 = 142.6500 yen)
Business Times
27-05-2025
- Automotive
- Business Times
Denso in talks to buy Temasek-backed seed maker for US$500 million
[TOKYO] Denso is in final talks to buy a Temasek-backed seed supplier for around US$500 million, as the Japanese vehicle parts supplier deepens its expansion into the agriculture sector, sources familiar with the matter said. Singapore investment firm Temasek, which owns almost half of Axia Vegetable Seeds Group, is set to generate a profit from the sale, the sources said, asking not to be identified because the negotiations are private. Representatives for Denso and state-owned Temasek declined to comment. Netherlands-based Axia did not immediately respond to a request for comment made outside of normal office hours. A purchase would align with Denso's ambition to become a key supplier of industrialised greenhouses capable of producing food in any climate. The company is seeking to generate 20 per cent of its revenue from 'new value business' including food and agriculture, it said in 2023. The auto business currently accounts for more than 98 per cent of its revenue, according to data compiled by Bloomberg. Denso acquired greenhouse maker and horticultural solutions provider Certhon Build BV in 2023, and has been developing robots able to pick fruits and vegetables such as tomatoes. It has said its share of the 700 billion yen (S$6.3 billion) market for greenhouses and adjacent segments is only about 2 per cent, with room to grow. For Temasek, Axia is the latest in a series of asset sales involving its investees and subsidiaries. Axia also sold its open-fields seeds business to India's Namdhari Seeds earlier this year. Olam Group, a Temasek-owned food and agriculture trader, agreed to sell a controlling stake in its agribusiness unit to Saudi Agricultural & Livestock Investment in a US$1.8 billion deal in February. BLOOMBERG
Japan Times
26-05-2025
- Automotive
- Japan Times
Denso in talks to buy Temasek-backed seed supplier for $500 million
Denso is in final talks to buy a Temasek-backed seed supplier for around $500 million (¥71.4 billion), as the Japanese vehicle parts supplier deepens its expansion into the agriculture sector, people familiar with the matter said. Singapore investment firm Temasek, which owns almost half of Axia Vegetable Seeds, is set to generate a profit from the sale, the people said, asking not to be identified because the negotiations are private. Representatives for Denso and state-owned Temasek declined to comment. Netherlands-based Axia didn't immediately respond to a request for comment made outside of normal office hours. A purchase would align with Denso's ambition to become a key supplier of industrialized greenhouses capable of producing food in any climate. The company is seeking to generate 20% of its revenue from "new value business' including food and agriculture, it said in 2023. The auto business currently accounts for more than 98% of its revenue, according to data compiled by Bloomberg. Denso acquired greenhouse maker and horticultural solutions provider Certhon in 2023, and has been developing robots able to pick fruits and vegetables like tomatoes. It has said its share of the ¥700 billion ($4.9 billion) market for greenhouses and adjacent segments is only about 2%, with room to grow. For Temasek, Axia is the latest in a series of asset sales involving its investees and subsidiaries. Axia also sold its open-fields seeds business to India's Namdhari Seeds earlier this year. Olam, a Temasek-owned food and agriculture trader, agreed to sell a controlling stake in its agribusiness unit to Saudi Agricultural & Livestock Investment in a $1.8 billion deal in February.
Japan Times
20-05-2025
- Automotive
- Japan Times
Toyota Industries to accept tender offer from Toyota Motor group
Toyota Industries plans to accept a tender offer from the Toyota Motor group, sources familiar with the matter have said. Toyota group aims to carry out the tender offer for Toyota Industries as early as this month to take the machinery maker private, the sources said. Shares of Toyota Industries surged as much as 9% on Tuesday, the most since April 28, after reports that the firm is set to accept the buyout offer. Toyota Motor shares climbed as much as 2.4% in early Tokyo trading. Toyota Motor and its group companies are considering borrowing up to ¥3 trillion ($21 billion) to fund the deal, the Nikkei newspaper reported Tuesday morning. The planned buyout is part of a broader move by Japanese conglomerates to scale back their many listed subsidiaries. The trend comes amid rising pressure from the Tokyo Stock Exchange and activist shareholders to dismantle what are called parent-child listings. Toyota Motor has a stake of about 24% in Toyota Industries. Denso, an auto parts maker in the group, owns about 7% of Toyota Industries. Toyota Fudosan, a real estate firm led by Toyota Motor Chairman Akio Toyoda, owns about 5% of Toyota Industries. Toyota Industries had a market value of some ¥5.4 trillion as of Monday. It holds a stake of some 9% in Toyota Motor and some 5% in Denso. Going private will make Toyota Industries free from pressure from overseas investment funds.
