Toyota Industries likely to accept $42 billion takeover bid by group firms

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Toyota Industries is likely to announce as early as Tuesday that it will accept a takeover offer from Toyota Motor and other affiliated group companies, according to a Nikkei report.

 

Once the tender offer is accepted, the group companies are expected to take Toyota Industries private. The acquisition is estimated to be valued at around 6 trillion yen (approximately $42 billion).

 

The acquisition will be financed partly by Toyota Fudosan, the group’s real estate division, as well as personal contributions from Akio Toyoda, chairman of Toyota Motor. Up to 50 per cent of the total amount is expected to be raised through loans from financial institutions.

 

Toyota Industries Corporation is a prominent Japanese company known for its diverse range of industrial products, including forklifts, textile machinery, and automotive components.

 

Established in 1926, Toyota Industries Corporation has grown into a global leader, playing a significant role in manufacturing. The company is part of the larger Toyota Group. 

 

This move reflects ongoing strategic consolidation within the Toyota Group aimed at strengthening its competitive position and streamlining operations.

 

Toyota’s origins trace back to the early 20th century when Sakichi Toyoda founded Toyoda Automatic Loom Works in 1926, focusing on textile machinery. The company’s automotive division was established later, leading to the creation of Toyota Motor Corporation in 1937 as a separate entity dedicated to vehicle manufacturing.

 

Over time, Toyota expanded rapidly, becoming one of the world’s largest automobile producers. As the business grew, it diversified into several specialised companies within the broader Toyota Group, such as Toyota Industries, handling industrial equipment, and Toyota Fudosan.

 

This division allowed the group to focus on different sectors while maintaining close collaboration under the Toyota brand umbrella, helping to build a global industrial powerhouse.