Toyota Group suppliers Denso, Aisin scale back cross-shareholdings, filing shows By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 20 2024
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Source: Investing.com
- Toyota Suppliers Sell Off Holdings: Denso and Aisin, top suppliers of Toyota, have sold holdings in several Toyota-affiliated companies to reduce cross-shareholding.
- Denso's Stake Sales: Denso, a major automotive components maker, sold stakes in Toyota Group companies like Toyota Boshoku, Toyota Tsusho, Toyoda Gosei, and Hino Motors by the end of the last financial year.
- Aisin's Reduction of Stakes: Aisin also reduced its stakes in the same companies to zero and sold off its stake in Denso as well.
- Focus on Cross-Shareholdings: Toyota's cross-shareholdings have been under scrutiny due to corporate governance concerns, with more companies moving away from the practice to avoid cozy relationships between management and large shareholders.
- Plans for Transformation: Toyota and Denso announced plans to sell cross-shareholdings to accelerate transformation, fund acquisitions, and make other investments.
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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.
