Toyota Industries plans to accept a tender offer from the Toyota Motor group, sources familiar with the matter have said.

Toyota group aims to carry out the tender offer for Toyota Industries as early as this month to take the machinery maker private, the sources said.

Shares of Toyota Industries surged as much as 9% on Tuesday, the most since April 28, after reports that the firm is set to accept the buyout offer. Toyota Motor shares climbed as much as 2.4% in early Tokyo trading.

Toyota Motor and its group companies are considering borrowing up to ¥3 trillion ($21 billion) to fund the deal, the Nikkei newspaper reported Tuesday morning.

The planned buyout is part of a broader move by Japanese conglomerates to scale back their many listed subsidiaries. The trend comes amid rising pressure from the Tokyo Stock Exchange and activist shareholders to dismantle what are called parent-child listings.

Toyota Motor has a stake of about 24% in Toyota Industries. Denso, an auto parts maker in the group, owns about 7% of Toyota Industries.

Toyota Fudosan, a real estate firm led by Toyota Motor Chairman Akio Toyoda, owns about 5% of Toyota Industries.

Toyota Industries had a market value of some ¥5.4 trillion as of Monday. It holds a stake of some 9% in Toyota Motor and some 5% in Denso.

Going private will make Toyota Industries free from pressure from overseas investment funds.