Toyota Motor is considering acquiring its key auto parts supplier, Toyota Industries, for a record $42 billion — nearly 40% above the company’s current market value of $27 billion. Such a massive deal could become one of the largest in the automotive industry and fundamentally change the ownership structure within the Toyota group.
The main reason for the acquisition is said to be the desire to improve corporate governance and eliminate cross-shareholding, which would make the business more transparent and efficient.
However, representatives from Toyota and Toyota Industries have not yet made a final decision, and the privatization proposal is being discussed with major banks and partners.
