Chris Hughes, Columnist

Mega Buyouts Can Help, Not Hinder, Japan Inc. Reform

Toyota Industries is the latest storied name to potentially go private. A setback for Japan’s stock market? Not if shareholders make money.

April 27, 2025 at 8:30 PM UTC

By Chris Hughes

Chris Hughes is a Bloomberg Opinion columnist covering deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

Toyota Motor Chair Akio Toyoda has proposed a buyout of Toyota Industries, the auto-parts maker founded by his great-grandfather. — Toyota Motor Chair Akio Toyoda has proposed a buyout of Toyota Industries, the auto-parts maker founded by his great-grandfather.
Photographer: Akio Kon/Bloomberg

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This is a great time to be a mergers and acquisitions banker in Japan. The latest hot mandate is a potential ¥6 trillion ($42 billion) leveraged buyout of auto-supplier Toyota Industries Corp. Going private would mark a retreat from a long-standing cohabitation between the founding family and public-market investors just when Japan is trying to make its stock market more attractive for local and international capital. Is that bad news for the reform effort? Not necessarily.

Toyota Motor Corp. Chair Akio Toyoda has proposed a buyout of Toyota Industries, which was founded by his great-grandfather, Bloomberg News reported on Friday. Toyota Motor is considering whether to participate, according to the Financial Times. The $295 billion carmaker and its affiliates hold 38% of Toyota Industries, according to data compiled by Bloomberg.