Toyota Motor Corporation Shares Plunge After $33 Billion Privatization Deal

Toyota Motor Corporation's stock tumbled 13% following the announcement of a ¥4.7 trillion ($33 billion) buyout led by Akio Toyoda. The tender offer of ¥16,300 per share for Toyota Industries fell below Tuesday's closing price of ¥18,400, sparking investor discontent.

The MOVE reinforces the founding family's control but comes at a 15% discount to market value. Fitch Ratings noted Toyota's historical use of cross-shareholding as a defense mechanism, last employed in 2005 against acquisition threats.

This privatization unfolds as Japanese corporations face increasing pressure to unwind cross-shareholdings—a practice long criticized for insulating management from market discipline. The deal's structure suggests Toyoda prioritizes control over shareholder returns, a stance that rattled markets.