Toyota considers investing in a potential purchase of key suppliers of $ 42 billion

Of Maki Shiraki and Makiko Yamazaki

Tokyo (Reuters) -Toyota Motor said he is exploring the possibility of investing in a potential purchase of key pieces providers Toyota Industries, a purchase that could supposedly cost $ 42 billion.

“We are currently exploring several possibilities, including partial investment,” the car maker said in a presentation on the Tokyo Securities Stock Exchange on Saturday after reports on possible purchase.

Bloomberg News reported on Friday that Toyota President Akio Toyoda and his founding family have proposed to acquire Toyota Industries in a possible agreement of 6 trillion yen ($ 42 billion).

Toyota Industries, which has a market value of 4 trillion yen, said in a statement that he had received proposals for private through a special purpose company, but denied that he had received a purchase proposal from Toyota President or Toyota Group.

Two sources familiar with the matter said that Toyota Industries is thinking of playing Toyota and its group companies, as well as the main banks to fund a purchase. They also said that the proposal did not come from Akio Toyoda or from the Toyota group.

The sources, which refused to be identified as a matter are not public, said that if Toyota Industries would be private, it would help improve the Toyota group’s corporate government, as cross costs would not be desired.

Both Toyota and Toyota Industries said in their statements that nothing has been decided.

Toyota owned 24% of Toyota Industries in September last year, while Toyota Industries had 9.07% Toyota and 5.41% dense, another key toyota supplier.

Toyota Industries has faced the increase in the pressure of shareholders to undo their cross -cutting actions so that it can increase shareholders’ returns and investments.

He has sold some of his cross actions, including actions in Aisin, another provider of the Toyota group.

One of the sources said that going private would also give Toyota industries the freedom to focus on growth strategies without worrying about shareholders’ returns.

Cross brands, where companies have actions with each other and are very common in Japan, have been a growing scrutiny of regulators and shareholders, as the practice can isolate the management of having to serve the interests of general shareholders.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. A car division was created within the company and then turned as a Toyota engine. Toyota Industries is one of the main forklights, produces the RAV4 Sport Utility vehicle for Toyota Motor, as well as engines.