Toyota Motor Corp increased its tender offer price for Toyota Industries Corp to 18,800 yen ($118.11) per share, a jump of more than 15% from the original 16,300 yen offer announced in June 2025. The announcement was made on January 14, 2026, and the tender will run from January 15 through February 12.
The higher bid lifts the total value of the transaction to roughly 5.4 trillion yen, up from 4.7 trillion yen, or about $35 billion, reflecting Toyota Motor’s willingness to pay a premium to secure full control of the founding company of the Toyota Group.
The price increase came after pressure from activist investor Elliott Investment Management, which disclosed a stake in Toyota Industries and criticized the original offer for undervaluing the business and lacking transparency. Elliott’s push helped persuade Toyota Motor to revise its terms.
Toyota Industries, while best known for its forklift business, also produces automotive components, textile machinery, and logistics solutions. In the second quarter of fiscal 2026, the company reported a 70% drop in operating profit to 37.5 billion yen, driven by higher costs for engine certification, labor, and tariffs.
By taking Toyota Industries private, Toyota Motor aims to streamline the Toyota Group’s supply chain, reduce cross‑shareholdings, and unlock synergies in research and development, production, and logistics. The move aligns with Japan’s broader corporate governance reforms that encourage the unwinding of cross‑shareholdings.
Investors responded positively to the announcement, with Toyota Industries’ market perception improving as the offer price exceeded the company’s trading level. The deal is expected to strengthen Toyota Motor’s control over key manufacturing and logistics capabilities, potentially enhancing long‑term operational efficiency.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.