From Yahoo Finance: 2025-06-03 22:38:00

Investors reacted negatively to Toyota Motor’s $33 billion take-private offer for Toyota Industries, with shares falling 12%. The deal aims to address parent-subsidiary governance concerns but faces opposition due to an offer price below market value. Experts criticize the deal for undervaluing assets and benefiting the founding family.

The transaction seeks to unwind cross-shareholdings in the Toyota Group, following regulatory pressure for better governance. Toyota Industries’ “parent-child listing” structure has been deemed unfair to minority shareholders and detrimental to corporate value. Experts highlight hidden asset value and criticize the deal as a squeeze-out of minority shareholders.

Despite assurances from Toyota Motor, concerns remain about minority shareholder interests and the realignment of capital structures within the Toyota Group. A new holding company will be established, with investments from various group companies and the founding family. Media reports had suggested a higher tender offer, sparking speculation.

Toyota Motor and group companies Aisin, Denso, and Toyota Tsusho will sell their shares in Toyota Industries and acquire their own shares. Toyota Industries, with historical ties to Toyota Motor, was initially established to make automatic looms and later spun off the automotive division. Share ownership history between the companies is intricate.

Read more: Toyota Industries sinks after parent’s takeover bid misses expectations