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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Tokyo, June 3 – Toyota Motor Corporation has decided to acquire its founding parent company, Toyota Industries Corporation, in a deal that aims to take the company private by the end of the year, according to a report by Nikkei.
The decision was made during a board meeting held on June 3, where Toyota Industries agreed to accept the acquisition offer. Toyota plans to launch a tender offer as early as December, with participation from Chairman Akio Toyoda, Toyota Real Estate, and other affiliated entities.
Despite the move, there is uncertainty over whether shareholders will tender their shares, as Toyota’s offer price of ¥16,300 per share falls below the current market price of ¥18,400, raising questions about shareholder response.
Founded by Sakichi Toyoda, the great-grandfather of Akio Toyoda and the original founder of the Toyota Group, Toyota Industries initially specialized in automatic looms before spinning off its automotive division, which became today’s Toyota Motor Corporation.
Currently, Toyota Industries focuses on forklift trucks and also manufactures components such as RAV4 bodies. The company is collaborating with Toyota on the development of solid-state batteries for next-generation electric vehicles (EVs).
For the fiscal year 2024 (ending March 2025), Toyota Industries reported revenues of ¥4.0849 trillion (~USD 29.6 billion), with a market capitalization of around ¥6 trillion (~USD 43.5 billion).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
