Toyota Motor Corp (7203.T) announced a major restructuring move on Thursday, confirming a $26 billion deal to take long-time group supplier Toyota Industries Corp (6201.T) private. The acquisition is being led by Toyota Fudosan, an unlisted real estate firm chaired by Toyota’s current Chairman Akio Toyoda, underscoring the continued influence of the automaker’s founding family.
The offer, pegged at 3.7 trillion yen ($26 billion), values Toyota Industries at 16,300 yen per share, notably below its recent closing price of 18,400 yen—a surprise to markets expecting a valuation closer to $42 billion, as previously reported.
Toyota Industries, which manufactures forklifts, engines, batteries, and converters, has deep historical roots in the Toyota Group. Founded in 1926 as Toyoda Automatic Loom Works by Sakichi Toyoda, it later incubated the automotive division that became Toyota Motor Corp.
Toyota currently holds about 24% of Toyota Industries, while the latter owns roughly 9% of Toyota Motor and over 5% of Denso (6902.T), another key Toyota group supplier. As part of the restructuring, Toyota also revealed plans to repurchase its own shares held by Toyota Industries—an effort aimed at untangling cross-shareholding structures and enhancing corporate governance.
This move is in line with a broader trend in Japanese corporate reform, where regulators and investors are pressuring conglomerates to improve transparency, governance, and shareholder value. The buyout, though expected, signals a strategic pivot in how Toyota aligns its group entities for the future, especially under the influence of Akio Toyoda’s leadership and legacy vision.
