Toyota Motor is considering disposing of strategic shareholdings worth about Y3tn ($19.21bn), with financial institutions and likely to begin sales this year, Reuters reported, citing sources.
The potential divestment – which could expand depending on participation by shareholders – would represent a notable development in Japan’s ongoing corporate governance reforms.
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Toyota is expected to repurchase shares via buybacks, while a secondary placement to other investors has also been explored, one source told the news agency.
Details including timing and overall size remain uncertain, and the initiative could still be withdrawn, another source said.
According to the report, Japan’s regulators and the Tokyo Stock Exchange have been urging companies to unwind cross-shareholdings, a long-established practice in which corporations hold equity in one another to strengthen commercial relationships.
Governance specialists and international investors have argued that such arrangements can shield management from shareholder scrutiny, the report added.
Toyota already maintains a policy to cut cross-held stakes but has faced investor criticism regarding governance standards and capital allocation.
According to a source cited in the report, the proposed move is intended to underline the company’s commitment to governance reform.
Separately, Toyota is pursuing a tender offer for forklift manufacturer Toyota Industries.
Activist investor Elliott has opposed the transaction, saying it is undervalued and lacks transparency, and Toyota has extended the offer deadline to 2 March after insufficient shareholder backing.
In a separate recent development, Toyota Motor North America has partnered with Treehouse to provide customers of 2026 and newer Toyota and Lexus electrified vehicles in the US with home EV charger purchasing and installation support.
The arrangement covers battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), with the US-based software-enabled electrification platform provider managing the full process for Level 2 AC home charging installations.
