Toyota Considering Investing to Buy Out Supplier Toyota Industries
Toyota has confirmed it is considering an investment in a potential buyout of long-standing supplier Toyota Industries; the operation is valued at nearly $42 billion USD, according to information relayed by Bloomberg.
A large-scale project still in the exploratory phase
In a document filed with the Tokyo Stock Exchange on Saturday, Toyota stated that it is “currently exploring various possibilities, including a partial investment.”
That statement follows a report that Chairman of the Board Akio Toyoda and the founding family had proposed the acquisition of Toyota Industries through a transaction worth about 6 trillion yen ($42 billion USD).
Cautious response from Toyota Industries
Toyota Industries, valued at approximately 4 trillion yen, confirmed that it had received proposals to go private through an ad hoc entity, while denying any official offer emanating directly from Chairman Akio Toyoda or the Toyota group.
Two sources close to the matter specify that Toyota Industries is considering approaching Toyota and its affiliated companies as well as major Japanese banks to finance the operation.
Read more