Akio Toyoda, chairman of Toyota Motor Corp., is planning a record-breaking ¥6 trillion ($42 billion) buyout of Toyota Industries Corp., the historic company that gave birth to the world’s largest automaker, according to a report by Bloomberg News citing people familiar with the matter.
The proposal, which values Toyota Industries at a 40% premium over its Friday closing price, would be one of the largest corporate buyouts globally to date. Sources told Bloomberg that a special committee has been formed within Toyota Industries to evaluate the offer, and external advisers have been hired to review its viability. Both Toyota Industries and Toyota Motor declined to comment publicly on the matter.
Founded 135 years ago by Toyoda’s great-grandfather Sakichi Toyoda, Toyota Industries began as a loom manufacturer and laid the foundation for the Toyota empire when Sakichi’s son Kiichiro launched Toyota Motor in 1937. While Toyota Industries is smaller and lower profile today, it remains symbolically and financially central to the group, producing automotive components and retaining a significant 9.1% stake in Toyota Motor.
The proposed deal would significantly enhance Akio Toyoda’s influence over the Toyota Group, despite his current direct ownership in Toyota Motor standing at less than 1%. Through the acquisition, he aims to tighten control over a network of suppliers and affiliated companies spanning across Japan’s industrial landscape, including holdings in rival carmakers and real estate.
According to Bloomberg, financing for the deal is expected to include Akio Toyoda’s personal funds, along with loans from major Japanese banks such as Mitsubishi UFJ Financial Group and other megabanks. Sources emphasized that discussions are still in early stages and the deal’s structure could change—or fall through altogether.
The buyout bid surfaces at a time of heightened merger and acquisition activity in Japan, where long-standing corporate relationships are being reevaluated under pressure from global investors advocating stronger governance and shareholder returns. It follows the failed attempt by the founding Ito family to privatize Seven & i Holdings Co., which opened the door for foreign takeover interest.
Despite its quieter public profile, Toyota Industries maintains a revered status within the group and the Toyoda family’s legacy. Its deeply interwoven ownership—Toyota Motor and its affiliates hold roughly 38% of its shares, while Akio Toyoda chairs another affiliate, Toyota Fudosan Co., which owns 5%—means that any restructuring could have significant ripple effects across the wider Toyota ecosystem.
