The American investment company Elliott Investment Management has acquired a significant stake in Toyota Industries Corp. This is reported in a Toyota press release.
As part of the deal, Elliott increased its stake in Toyota Industries from 3.26% to 5%, becoming one of the company's largest shareholders, and expressed disagreement with the estimated cost of privatization at 16.3 thousand yen per share, which "significantly undervalues Toyota Industries in the absence of transparency and management practices."
In August, more than two dozen investors sent letters to the boards of directors of Toyota Industries and Toyota Motor with a request to ensure greater transparency of the transaction, as well as to pay more attention to minority shareholders.
Earlier, the proposal of the Chairman of the Board of Toyota Motor Corp. Akio Toyoda on the buyout of Toyota Industries Corp. over 4.7 trillion yen ($30.5 billion) was postponed due to the excessively long approval process in accordance with the antimonopoly laws of various countries.
Elliott is focused on Toyota Industries' stakes in other companies whose value is rising. The market value of the 10 largest mutual stakes in Toyota Industries has grown by more than 20% since the announcement of privatization.
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. They will jointly provide Toyota Motor with a loan of 2.8 trillion yen ($21 billion) to finance the deal.
A.Toyoda will personally invest 1 billion yen in a holding company that will be created to privatize Toyota Industries and will be primarily owned by Toyota Fudosan Co., an unregistered real estate company managed by A.Toyoda.
In May 2025, Toyota Industries announced its readiness to accept the offer of Toyota Motor, which, together with its subsidiaries, owns 38% of Toyota Industries shares.
The deal is aimed at strengthening control over one of the largest Japanese companies amid a growing trend in the M&A sector and in line with the trend towards reducing the number of listed subsidiaries at the request of the Tokyo Stock Exchange and activist shareholders. The deal meets the interests of the Japanese government in ending cross-ownership of shares.
Elliott Investment Management is an American investment company and one of the largest activist funds in the world. The company invests in troubled companies and adheres to aggressive tactics when restructuring companies in difficult situations. Elliott manages over $55 billion in assets. The headquarters is located in West Palm Beach, Florida.
Toyota Motor Corp. — Japanese Automobile Corporation. The company also provides financial services and is the largest publicly traded automotive company in the world. The headquarters is located in the city of Toyota (Japan). With a capital of 42.5 trillion yen, Toyota is the second most valuable car company in the world after Tesla Inc.
Toyota Industries is a Japanese manufacturer of automatic looms, compressors for automotive air conditioners, automobiles, engines, electronics, and handling equipment. The headquarters is located in the city of Kariya (Japan).
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