Toyota Motor Chairman Proposes Acquisition of Toyota Industries

According to a Bloomberg News report released on Friday, Akio Toyoda, Chairman of Toyota Motor, has suggested acquiring Toyota Industries in a transaction potentially valued at 6 trillion yen ($42 billion).

Toyota Industries, a key supplier of parts for the automaker, has established a dedicated committee to assess the proposal. The committee has also engaged advisors to carefully evaluate the offer, Bloomberg reported, citing sources familiar with the situation.

If implemented, the deal would represent a substantial buyout in corporate Japan. It would grant Toyoda, the grandson of Toyota’s founder, complete authority over a major entity within the expansive Toyota group. Toyota Industries, which originated as a textile loom manufacturer, holds symbolic significance within the group as the company from which Toyota Motor eventually evolved.

Currently, the company continues its textile machinery production alongside manufacturing car engines, electronics, and stamping dies.

Toyota’s overseas sales reached a record high in March, driven by strong demand from U.S. buyers anticipating potential tariffs.

Representatives from both Toyota Motor and Toyota Industries were unavailable for immediate comment outside of standard business hours.

This potential acquisition emerges amid a rise in management buyouts and corporate acquisitions across Japan. This surge is largely attributed to expectations that corporate governance reforms will enhance shareholder returns, coupled with a growing conviction that the economy has overcome prolonged deflation.