Overview

• Toyota Industries is set to accept a tender offer from Toyota Motor Group, aiming to take the machinery maker private this month, according to sources.
• Toyota Motor is exploring financing options, potentially borrowing up to ¥3 trillion ($21 billion) to fund the privatization effort.
• The move aligns with a broader trend in Japan to dismantle cross-shareholdings under pressure from regulators and activist investors.
• Toyota Industries' privatization could enhance governance flexibility and operational independence by reducing shareholder return pressures.
• Toyota Motor currently owns 24% of Toyota Industries, while the supplier holds stakes in Toyota Motor and Denso, highlighting the intertwined nature of their holdings.