Toyota considers investing in potential $42 billion buyout of key supplier By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 27 2025
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Source: Investing.com
Toyota's Potential Buyout of Toyota Industries: Toyota Motor is considering investing in a potential $42 billion buyout of its key parts supplier, Toyota Industries, although both companies have stated that no decisions have been made yet.
Impact on Corporate Governance and Shareholder Returns: The move to go private could enhance corporate governance for the Toyota group by unwinding cross-shareholdings and allowing Toyota Industries to focus on growth strategies without the pressure of shareholder returns.
Analyst Views on TM
About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
