Why the Buyout of Toyota Industries Faces Investor Resistance

Toyota Industries Corp. — established nearly a century ago to commercialize automated textile looms — laid the foundations for what has become Japan’s largest business group. Now the conglomerate is seeking to reclaim the listed company’s future by taking it private at a valuation of ¥6.1 trillion ($39 billion).

That ambition, however, met shareholder resistance in mid-2025 when investors were presented with what many viewed as a low-ball buyout offer, prompting a US shareholder — one of the world’s most zealous activist funds — to step in and push for a better deal.