Shares of Toyota Motor surged on Monday following news that the company is considering a potential buyout of its crucial parts supplier, Toyota Industries.
Toyota Motor Chairman Akio Toyoda has proposed purchasing Toyota Industries, a move aimed at strengthening his control over Japan’s largest business empire, according to a Bloomberg report on Friday. The buyout offer values Toyota Industries at 6 trillion yen ($42 billion), representing a 40% premium over its market value as of Friday’s close.
Toyota Industries, which manufactures textile looms and car parts, has been a key supplier to Toyota Motor.
In a filing on Saturday, Toyota Motor stated that it is exploring a range of options, including a partial investment.
As a result of the news, shares of Toyota Motor, listed on the Tokyo Stock Exchange, rose by 5.4% to 2,836 yen by 02:45 GMT.
Shares of Toyota Industries were not traded on Monday due to a significant increase in buy orders.
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