Shares of Toyota Industries fell as much as 13% on Wednesday after Toyota Group announced a $33 billion deal to take the company private, according to CNBC. The offer includes a $26 billion tender for shares priced below Tuesday’s close, frustrating investors. The move comes amid pressure from regulators to unwind cross-shareholding structures long used to fend off takeovers. Toyota will form a new holding company, with funding from Toyota Fudosan, Akio Toyoda, and Toyota Motor, alongside bank loans. Analysts expect more cross-shareholding reductions within the group. A global equity analyst, Arun George, called the Toyota Industries buyout offer “unattractive,” noting it was below the valuation midpoint suggested by independent advisers. Despite three requests from a special committee to raise the offer, the bidders refused. While Toyota Motor said it was considering a $42 billion investment, analysts view the broader strategy of unwinding cross-shareholdings as a long-term positive for capital returns. The deal comes amid U.S. auto tariff pressures, which are expected to heavily impact Toyota due to its large U.S. market exposure.
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