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Toyota Industries Corp. is reportedly preparing to accept a buyout offer from Toyota Motor Corporation (NYSE:TM) Chairman Akio Toyoda, according to a Kyodo News report released on May 19. The takeover announcement is expected sometime in May or June.
Last month, Bloomberg reported that Toyoda is working on a plan to acquire Toyota Industries through a special-purpose vehicle, with support from Japan’s largest banks. The deal is estimated to be worth around ¥6 trillion (approximately $41.4 billion).
Meanwhile, Nikkei, a Japanese media company, reported that Toyota and its affiliated companies may borrow up to ¥3 trillion ($21 billion) from financial institutions to help finance the acquisition.
A Toyota spokesperson declined to comment beyond the company’s earlier statement issued after Kyodo’s report. Bloomberg previously noted that the proposed acquisition could significantly reshape the Toyota Group by bringing major parts supplier Toyota Industries fully under the automaker’s control.
Following the news, Toyota Industries Corp. shares jumped by up to 9%, marking their largest increase since April 28, following a news report. TM also surged by 1.16%.
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