Shares of Toyota Industries Corp., a leading forklift producer, surged on Thursday following Toyota Motor’s announcement of an increased tender offer to buy out the company. The new offer price, raised by over 15%, now stands at 18,800 yen (approximately $118.11) per share, up from the previous 16,300 yen announced in June 2022. This revision reflects Toyota Motor’s commitment to acquiring the company for more than $35 billion, as it seeks to take Toyota Industries private.
The market responded positively, with Toyota Industries’ shares climbing 6.3% to reach 19,160 yen, surpassing the revised tender offer. Meanwhile, Toyota Motor’s shares also saw a modest increase of over 2%. Last year, Toyota Motor aimed to acquire Japan’s largest corporate group, initially valuing the deal at 4.7 trillion yen, which included contributions from Chairman Akio Toyoda and an investment of around 700 billion yen in non-voting preferred shares.
However, Toyota Industries has expressed concerns about the tender offer, previously requesting a higher price to reflect the deal’s potential for success. Arun George, a global equity research analyst with SmartKarma, remarked, “While the revised offer represents an all-time high, it remains arguably light,” suggesting that the company may still be undervalued based on independent adviser’s assessments.
Analyst Travis Lundy anticipates significant developments related to this acquisition, labeling it as “the biggest mis-priced takeover in Japan for quite a while.” He expects activist investors to emerge, advocating for a higher offer or potentially obstructing the deal altogether. This scenario indicates a heated ongoing discussion around the true value of Toyota Industries amid the bidding process.
In related news, Toyota Motor reported a decline in global output and sales for November. Production dropped 5.5% year-on-year, totaling 821,723 units, marking the company’s first year-on-year output decrease in six months. Global sales experienced a 2.2% reduction, driven largely by a drop in Chinese sales following cuts to purchase subsidies in various regions. Furthermore, the automaker acknowledged a projected financial impact exceeding 1.45 trillion yen (over $9 billion) from U.S. tariffs, which may affect its fiscal strategy.
In response to these challenges, Toyota Motor has announced a substantial investment of $912 million across its manufacturing facilities in five Southern states of the U.S. This move is part of a broader strategy that aims to escalate its total investment in the U.S. to up to $10 billion by 2030. As industry analysts and investors keep a close watch, the unfolding dynamics between Toyota Motor and Toyota Industries may shape the landscape of Japan’s corporate acquisitions and investments in the coming months.
In summary, the heightened interest in Toyota Industries, coupled with ongoing market fluctuations, positions this acquisition at the forefront of automotive and industrial news, drawing attention from analysts and investors alike.
Original Source: https://www.cnbc.com/2026/01/15/toyota-industries-shares-jump-after-toyota-motor-raises-buyout-offer-to-over-35-billion.html
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Publish Date: 2026-01-15 08:19:00
