Toyota Motor has announced a $33 billion take-private deal for its stake in Toyota Industries, a move that appears to prioritize the interests of its parent company over those of independent shareholders. The deal involves launching a tender offer for 9.1% of its shares, buying preference shares, and selling its current stake in Toyota Industries.
The structure of the deal has raised concerns about transparency and fairness. By contributing 80% of the equity to the transaction, Toyota Motor will own 24% of Toyota Fudosan, a real estate vehicle that controls 99.5% of Toyota Industries. This means that independent shareholders will have limited influence over the company’s direction.
The deal has been criticized for undervaluing Toyota Industries’ shares, with the tender offer price being an 11% discount to the stock’s closing price on June 3. The company’s founding family member, Akio Toyoda, will retain significant control and ownership of the company.
Experts argue that this move is a poor translation of Japan’s shareholder push for greater transparency and accountability in large corporations. Instead of addressing these concerns, Toyota Motor appears to be prioritizing its own interests at the expense of independent shareholders.
Source: https://www.reuters.com/breakingviews/toyotas-take-private-is-costly-messy-defence-2025-06-03