Toyota Industries’ shares nosedive on $33 billion buyout deal — steepest fall in 10 months
- Shares of Toyota Industries experienced a important slump, dropping as much as 13% Wednesday.
- Satoru Aoyama, head of corporate ratings at Fitch Ratings in Japan, noted that Toyota previously used cross-shareholding to fend off potential acquisitions.
- the take-private deal involves a tender offer of $26 billion for toyota Industries shares at 16,300 yen apiece.
Toyota Industries Stock Plunges After Take-private Deal
Updated june 4, 2025
Shares of Toyota Industries experienced a important slump, dropping as much as 13% Wednesday. This decline reflects investor concern regarding the Toyota Group’s recent $33 billion deal to take the company private. The move comes amid increasing scrutiny of Japanese firms’ cross-shareholding practices.
Satoru Aoyama, head of corporate ratings at Fitch Ratings in Japan, noted that Toyota previously used cross-shareholding to fend off potential acquisitions. Though, Japan’s Financial Services Agency has pushed for a reduction in these arrangements.
the take-private deal involves a tender offer of $26 billion for toyota Industries shares at 16,300 yen apiece. This is notably lower than the previous closing price of 18,400 yen.
Toyota Group plans to establish a new holding company, with investments from Toyota Fudosan and Akio Toyoda, chairman of Toyota Motor. Financing will also come from Sumitomo Mitsui Banking Corporation, MUFG Bank, and Mizuho Bank.
Kei Okamura, managing director at Neuberger Berman, anticipates further unwinding of cross-shareholdings within the Toyota Group. He believes that if proceeds are reinvested for growth, it could benefit capital returns.
Arun George, a global equity research analyst, suggested the offer is “unattractive,” pointing out that the offer price was below the midpoint of the valuation range provided by independent financial advisers. He added that the special committee requested multiple times for an improved offer, but was refused.
Toyota Motor, spun off from Toyota Industries in 1937, had previously mentioned exploring investment possibilities in Toyota industries.
Toyota Industries manufactures a variety of products, including forklifts, engines, and electronic components.
The deal surfaces as the global automobile industry grapples with potential tariff increases, including those previously announced by former U.S. President Donald Trump.
What’s next
The unwinding of cross-shareholding ties within the Toyota Group could lead to further strategic shifts and investments in the company’s future growth.