Shares of Toyota Industries reached a record high on Thursday after Toyota Motor increased its buyout offer for the forklift and industrial equipment maker by more than 15%, valuing the deal at over $35 billion. The revised proposal has fueled investor speculation that an even higher bid could emerge.
Toyota Industries stock climbed nearly 6% to 19,080 yen, surpassing the newly offered price of 18,800 yen per share. The move suggests shareholders are anticipating further improvements to the offer. Shares of Toyota Motor also rose more than 2% following the announcement.
Late Wednesday, Toyota Motor said it had raised the tender offer price from 16,300 yen per share, announced last year, as it moves forward with plans to take Toyota Industries private. The offer values the deal at approximately 4.7 trillion yen. The proposed transaction includes contributions from Toyota Motor, as well as a personal investment of 1 billion yen from Chairman Akio Toyoda, and around 700 billion yen in non-voting preferred shares.
Toyota Industries had previously pushed back on the initial offer. In December, the company requested a higher price, expressing concern that the earlier bid undervalued the business and could fail to gain sufficient shareholder support.
Market analysts remain divided on whether the revised offer is adequate. Arun George, a global equity research analyst at SmartKarma, said the new price represents an all-time high but may still undervalue the company, as it sits below the midpoint of the valuation range set by an independent adviser. Other observers expect increased pressure from activist investors seeking either a higher price or changes to the deal structure.
Toyota Industries, the original founding company of Toyota Motor, manufactures forklifts, engines, electronic components, and industrial equipment, making it a strategically important asset within the Toyota Group.
The buyout development comes as Toyota Motor navigates broader challenges. The automaker recently reported a 5.5% year-on-year decline in global production in November, alongside a 2.2% drop in sales, partly due to weaker demand in China following reduced purchase subsidies. Toyota has also warned of a significant financial impact from U.S. tariffs, estimating a 1.45 trillion yen hit in the current fiscal year.
Despite these headwinds, Toyota Motor continues to expand its global footprint, announcing last November a $912 million investment across U.S. manufacturing facilities as part of a longer-term plan to invest up to $10 billion in the United States by 2030.
