The Toyota Buyout Is a Major Test for Japan’s Reforms

Japan Inc. has made great strides in corporate governance over the past decade that buoyed the stock market and ignited interest in dealmaking. It is now facing a landmark test of those efforts in a case involving the Toyota group.

Minority investors are upset about the group’s bid to take one of its listed affiliates private. They’re concerned about a slew of issues, mainly pricing and a lack of disclosure. The outcome of the ¥4.7 trillion ($31 billion) deal is being closely watched at home and abroad, especially in neighboring South Korea, which is starting to improve its own governance.