Toyota Industries Shares Soar as Toyota Motor Readies ¥6 Trillion Takeover

Toyota Industries' stock jumped to a record high on Tuesday after Kyodo News reported that Toyota Motor—together with a special-purpose vehicle backed by Chairman Akio Toyoda—will launch a tender offer as early as May or June to take the company private for approximately ¥6 trillion (US$41 billion).

Deal Details

• Tender Offer Timeline: Expected to launch in late May or June, subject to approval by a special committee at Toyota Industries.

• Acquisition Value: Around ¥6 trillion, compared to Toyota Industries' ¥5.4 trillion market capitalization as of May 19.

• Purpose: Consolidate group management and fend off activist shareholder pressure by simplifying the Toyota Group's ownership structure.

Market Reaction

• Toyota Industries (TYO:6201): Shares leapt 9% to ¥18,000 at the open—its highest level ever.

• Toyota Motor (TYO:7203): Stock rose 2% to ¥2,717, reflecting investor confidence in the parent's ability to finance the deal.

Financing & Strategic Rationale

The acquisition will be funded by loans from major banks, including Mitsubishi UFJ Financial Group (MUFG), highlighting the strength of Toyota Motor's credit position. By absorbing Toyota Industries, the parent aims to streamline decision-making across its automotive, materials handling, and logistics businesses.

Toyota Industries' Financial Profile

According to FMP's Company Rating & Information API, Toyota Industries maintains an A+ corporate rating and ended its latest quarter with over ¥1 trillion in cash and equivalents—providing a buffer against takeover premiums. Its diversified revenue base and steady margins are detailed in the Balance Sheet Statements API, underscoring why the parts maker is a coveted target within the Toyota Group.

By combining its strong credit credentials with streamlined group governance, Toyota Motor seeks to solidify its long-term competitive advantage across key mobility and industrial segments.