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Toyota’s $35B Privatization Gamble Hits A Wall—Will A Higher Bid Be Forced?

The Toyota Motor Corp. group has extended the tender deadline to March 2 for its ¥6.1 trillion ($35 billion) bid to privatize Toyota Industries Corp., underscoring the increasingly delicate math behind the deal. Toyota already owns roughly 25% of Toyota Industries, and investors representing 33% of shares have agreed to tender, leaving the group approximately nine percentage points short of the two-thirds threshold required to push the transaction through. The extension signals that the conglomerate needs additional time to secure support amid vocal opposition from Elliott Investment Management LP, which argues the ¥18,800-per-share offer undervalues the company. The tension is heightened by the fact that Toyota Industries shares are trading above the offer price, raising expectations for a potential bump. At the same time, Japan’s broader push to unwind cross-shareholdings and strengthen corporate governance is shaping investor sentiment and influencing whether the bid ultimately succeeds—or is revised.