TOKYO: Shares of Toyota Industries are poised for a significant surge following news that Toyota Motor Corporation is considering a buyout of its key parts supplier. The stock, which opened Monday with a glut of buy orders, is on track to hit the daily upper price limit of 16,225 yen, marking a 23% increase from the previous session’s closing price of 13,225 yen.
This sharp rise, which would be the biggest one-day jump for Toyota Industries in over 40 years, comes after Toyota’s announcement over the weekend. In a filing with the Tokyo Stock Exchange, the automaker confirmed it was exploring various options, including a partial investment in Toyota Industries.
Toyota’s bold move has stirred significant interest. Bloomberg News reported Friday that Akio Toyoda, Chairman of Toyota, along with the founding family, have proposed a potential 6 trillion yen ($42 billion) deal to acquire Toyota Industries. However, while this proposal has raised expectations, Toyota Industries clarified in a statement that it had not received any official buyout offer from Toyota or its chairman. It did confirm, though, that it had received proposals about going private via a special purpose company.
The market response reflects investor optimism about the potential deal and the implications it could have for both companies, potentially reshaping the future of the automotive parts supply sector.
