Toyota Industries May Go Private

Tokyo, April 26 (Jiji Press)--Toyota Motor Corp. and others are considering a plan to take machinery maker Toyota Industries Corp. private, according to informed sources.

Toyota Motor and companies within the leading Japanese automaker’s group are possibly thinking about providing funds to carry out a tender offer for Toyota Industries, also utilizing loans from megabanks, the sources said Friday.

As the deal could end up costing trillions of yen, the feasibility of the proposed move is unclear.

Toyota Industries, which held a stake of some 9 pct in Toyota Motor as of the end of September 2024, has been under pressure from an overseas investment fund that is a shareholder of the machinery maker in recent years to make effective use of its assets.

Furthermore, since 2023, Toyota Industries has been hit with a series of issues, most notably an engine certification fraud.

[Copyright The Jiji Press, Ltd.]