Toyota Chairman Akio Toyoda’s bid to buy out Toyota Industries could pit him against Japan’s efforts to reform its corporate landscape by demanding more shareholder accountability from top businesses.
While the $42 billion take-private attempt is being cheered by investors — Toyota Industries’ stock climbed by the daily limit of 23%, and Toyota jumped as much as 5.6% — the potential move could also mark a retreat in the Toyota Group’s attempts to unwind cross-shareholdings and appoint more independent directors.
The chairman holds less than 1% of Toyota Industries, but the company has a 9.1% stake in the carmaker, and much depends on how these holdings are rationalized if and when the deal proceeds.
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