TOKYO — The world’s top-selling carmaker Toyota said Tuesday it would take its auto parts-making subsidiary Toyota Industries private in a deal that reportedly valued the unit at more than $40 billion.
Toyota Industries, which also manufactures forklifts and other industrial vehicles, will go private under a holding company comprised of Toyota Motor and others, the firms said.
Toyota Motor had previously owned around 23 percent of Toyota Industries — the original company, once a family loom business, that Toyota Motor evolved from.
Before the deal was announced, media reports had said that it valued Toyota Industries at $42 billion.
Taking Toyota Industries private “would allow more freedom in management” and could be good news for long-term investors, Bloomberg Intelligence analyst Tatsuo Yoshida said in April.
But he cautioned that the buyout would require raising a large amount of funds, so it is unclear whether it makes economic sense, Bloomberg reported at the time. — AFP
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