What is the value of the deal Toyota announced?

Toyota will take a group supplier private in a $26 billion deal, offering 3.7 trillion yen.

Who is leading the acquisition of Toyota Industries?

The acquisition is being led by an unlisted real estate company chaired by Toyota Chairman Akio Toyoda.

What was the offer price per share for Toyota Industries?

The real estate firm is offering 16,300 yen a share, which is below the stock's latest closing price of 18,400 yen.

How does this deal relate to corporate governance?

The deal is expected to improve the group's corporate governance, as Japanese companies face scrutiny over cross-shareholdings.

What percentage of Toyota Industries does Toyota own?

As of September last year, Toyota owned about 24% of Toyota Industries.

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Home > Finance > Toyota to take key supplier private in $26 billion deal

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Toyota to take key supplier private in $26 billion deal

Published by Global Banking & Finance Review®

Posted on June 3, 2025

2 min read

Last updated: January 23, 2026

Toyota to take key supplier private in $26 billion deal - Finance news and analysis from Global Banking & Finance Review

Toyota to Acquire Key Supplier in $26 Billion Privatization Deal

TOKYO (Reuters) -Toyota will take a group supplier private in a $26 billion deal, the companies said on Thursday, a landmark repositioning of Japan's most important corporation that signals the enduring influence of its founding Toyoda family.

An unlisted real estate company chaired by Toyota Chairman Akio Toyoda will offer 3.7 trillion yen ($26 billion) to take Toyota Industries, a maker of forklifts and engines, batteries and converters, off the market.

While the deal was widely expected, the price may come as something of a shock. The real estate firm, Toyota Fudosan, is offering 16,300 yen a share - below the stock's latest closing price of 18,400 yen.

Previous media reports indicated the deal would likely happen at around $42 billion, a 62% premium to the actual offer price.

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.

($1 = 142.6500 yen)

(Reporting by David Dolan; Additional reporting by Adwitiya Srivastava in Bengaluru and Mariko Katsumura in Tokyo; Editing by Edwina Gibbs)

Toyota to take key supplier private in $26 billion deal

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Toyota to Acquire Key Supplier in $26 Billion Privatization Deal

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