TOKYO (Reuters) – Shares of Toyota Industries were on track for their largest single-day increase ever on Monday after automaker Toyota announced it was considering a possible acquisition of the key parts supplier, valued at around 4 trillion yen ($28 billion).
Trading in Toyota Industries shares was suspended due to an overwhelming number of buy orders. Bid and ask prices indicated that shares were set to hit the daily upper limit of 16,225 yen – a 23% increase compared to Friday’s closing price of 13,225 yen. Reuters calculated the market capitalization based on the previous close.
According to data from LSEG dating back to 1984, such a jump would represent the stock’s biggest one-day surge in more than four decades.
Acquisition Speculation Intensifies
On Saturday, Toyota filed a statement with the Tokyo Stock Exchange confirming it was exploring several possibilities, including making a partial investment in Toyota Industries. This announcement came after Bloomberg News reported that Toyota Chairman Akio Toyoda and his founding family had proposed a full acquisition of Toyota Industries in a potential 6 trillion yen deal.
However, Toyota Industries issued its own statement on Saturday, clarifying that while it had received proposals regarding going private through a special purpose company, it had not received any direct buyout offer from Toyota’s chairman or the Toyota Group.
Wider Implications for Japanese Corporate Practices
This possible takeover highlights the growing pressure on Japanese corporations to untangle cross-shareholdings with affiliates and business partners. Traditionally, such shareholdings have been maintained over decades, but investor activism and corporate governance reforms are pushing for more transparency and efficiency.
As the situation evolves, investors and market analysts are closely watching how Toyota’s potential move could reshape corporate relationships and strategies within Japan’s industrial sector.
