Toyota Motor Corp. Chairman Akio Toyoda has proposed a buyout of supplier Toyota Industries Corp., people familiar with the matter said, seeking to consolidate his grip on Japan¡¯s biggest business empire as a wave of merger and acquisition activity roils the country.
The proposal values Toyota Industries, which makes looms for textile manufacturing as well as parts for Toyota¡¯s cars, at ?6 trillion ($42 billion), one of the people said, a premium of 40% over its closing stock price on Friday.
Toyota Industries, the company founded by Toyoda¡¯s great-grandfather Sakichi Toyoda that ultimately birthed the world¡¯s No. 1 carmaker, has formed a special committee after receiving the proposal and hired advisers to review its viability, the people said, asking not to be identified because the information isn¡¯t public.
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