Toyota Industries Likely To Accept $42B Takeover Bid From Toyota Motor And Group Companies, Says Report: Retail’s Undecided

Toyota Industries is expected to announce that it will accept a takeover bid from Toyota Motor Corp. (TM) and other group companies as early as Tuesday, Nikkei Asia reported on Monday.

The consortium is expected to take Toyota Industries private after the firm accepts the tender offer, the report added. The takeover bid is estimated to be 6 trillion yen, or approximately $42 billion.

Toyota Industries develops and manufactures automobiles and automobile-related products, such as vehicles, engines, car air-conditioning compressors, car electronics components and devices, and stamping dies. It also develops and produces the RAV4 for Toyota Motor.

The companies maintained a close relationship after Toyota Motor was spun off from Toyota Industries in 1937.

In FY2024, net sales to Toyota Motor accounted for 12.8% of Toyota Industries’ consolidated net sales. As of March 31, 2024, TMC also held 24.7% of Toyota Industries’ voting rights.

The carmaker had said in April that it is exploring investing in the potential buyout of its supplier.

Toyota is the largest automaker in the world in terms of global sales. In 2024 alone, the company sold 10.8 million vehicles.

Last month, the company also said that its worldwide sales and production rose for the fourth consecutive month in April.

The company’s global sales jumped 10% to 876,864 units in April on the back of a near 12% jump in sales within Japan and a near 10% increase in sales outside the home country.

On Stocktwits, retail investor sentiment about Toyota remained unmoved within the ‘bearish’ territory over the past 24 hours while message volume stayed at ‘normal’ levels.

NYSE-listed shares of Toyota traded over 1% lower on Monday. The stock is down by about 3% this year and by over 11% over the past 12 months. 

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