Akio Toyoda, chairman of Toyota Motor Corp. and grandson of the automaker’s founder, is leading a $33 billion (¥4.7 trillion) buyout bid to take Toyota Industries Corp. private. The tender offer, announced Tuesday, includes a $114 (¥16,300) per share buyout, representing an 11% discount to the company’s recent closing price. It is expected to close by December 2025.
The bid will be executed through a newly formed holding company primarily owned by Toyota Fudosan Co., an unlisted real estate firm that serves as the Toyoda family’s investment arm. Toyoda will personally contribute $7 million (¥1 billion) to the acquisition, which will be financed with $19.7 billion (¥2.8 trillion) in loans from Japan’s top three banks: Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group. Toyota Motor will also inject $7 billion (¥1 trillion) into the deal through an equity investment at a lower share price.
This marks one of the largest buyouts on record and could give the Toyoda family tighter control over the broader Toyota business group. The move aligns with Japanese government reforms that encourage conglomerates to unwind complex cross-shareholdings and improve transparency. Although the deal’s discount has raised concerns among some investors, company leaders emphasize that the structure is intended to strengthen operational unity and long-term growth within the Toyota Group.
The privatization will also dissolve Toyota Industries’ cross-shareholdings with Toyota Motor, Aisin Corp., Denso Corp., and Toyota Tsusho Corp. As part of the restructuring, these firms will repurchase their own shares held by Toyota Industries and divest their stakes in the company. Toyota Motor, however, will retain involvement through preferred shares.
Toyota Industries, originally founded by Toyoda’s great-grandfather Sakichi, has evolved from textile loom manufacturing into a global supplier of forklifts, vehicle components, and automotive systems. Its upcoming shareholder meeting is scheduled for June 10, followed by Toyota Motor’s on June 12.
The buyout comes as Toyota seeks to restore governance credibility following recent compliance scandals at group subsidiaries, including Toyota Industries. Leadership insists that the transaction reflects a commitment to corporate improvement rather than a management takeover, with Toyoda providing strategic guidance rather than seeking direct control.
