The President of Toyota Motor Akio Toyoda submitted a proposal to obtain the Toyota Industries supplier in a possible deal worth 6 trillion yen ($ 42 billion). If this is completed, the acquisition process will be a historical acquisition of Japan Inc. , Which reshapes one of the most powerful companies in the country.
Bloomberg stated that Toyota Industries, which manufactures spare parts for Toyota, has established a special committee to review the proposal and recruit advisors to evaluate the offer, according to Bloomberg, citing sources familiar with the matter.
If the deal continues, Toyoda, the grandson of the founder of the company, will give full control of Toyota Industries, a company of deep historical importance within the wider Toyota Group. Toyota Industries was originally founded as a manufacturer for Textile Loundistries a pivotal role in developing Toyota Motor in the world’s best -selling auto industry.
Today, Toyota Industries continues to produce textile machines, automotive, electronics and sealing death. The importance of the symbolic company of the Toyota Group is noticeable, which makes the potential acquisition a big step.
Toyota Motor and Toyota Industries have not yet commented on the suggestion outside normal working hours.
According to Bloomberg, the width of 6 trillion yen proposed is 40 % market value on Toyota Industries as of the closure of Friday. If the deal is advanced forward, it will be funded by Toyoda’s personal investments, which are completed by loans from major banks in Japan.
Japan has witnessed an increase in administrative acquisitions and companies’ acquisitions in recent years, and is fueled by improved governance expectations and better returns for shareholders, as well as optimism about the country’s economic recovery after years of recession and contraction. However, not all the acquisitions were successful, as it appears with the Seven & I Holdings, which gave up the administrative acquisition of $ 58 billion in February due to the difficulties in securing financing. Seven & I has a 7-Eleven stores chain, and has since failed its failed deal from her Canadian competitor Couche-TARD, which is now offered to the company.
