Group 1 - Toyota Motor Corporation's chairman Akio Toyoda is advancing a plan to acquire Toyota Industries Corporation for $42 billion, which would be the largest acquisition in Japan's history [1][2] - The acquisition aims to strengthen corporate governance by eliminating cross-shareholdings within the Toyota group [1][6] - A special purpose company established by Toyota for the acquisition has appointed Nomura Holdings as its financial advisor, while Toyota Industries has engaged SMBC Nikko Securities as its advisor [1][2] Group 2 - If successful, this privatization deal will rank among the largest acquisitions globally, with Toyota Industries' market capitalization around 5.5 trillion yen (approximately $384 billion), having increased by about 27% since the acquisition news broke [2] - The complex cross-shareholding structure within the Toyota group includes Toyota Motor holding approximately 24.2% of Toyota Industries, while Toyota Industries holds about 9.1% of Toyota Motor [2][5] - The Japanese government is accelerating efforts to eliminate such cross-shareholdings to improve corporate governance and increase shareholder returns [6]

Group 1 - Toyota is expected to report a 2% year-on-year increase in operating profit for Q4, reaching 1.13 trillion yen (78.6 billion USD), marking the first growth in three quarters, driven by strong demand for hybrid vehicles [1] - The company is facing potential impacts from U.S. tariffs, with analysts closely monitoring how these tariffs may affect future profits [1][3] - In Q1, Toyota sold 2.52 million vehicles, surpassing competitors Volkswagen and General Motors, with a 5% year-on-year increase in global sales due to strong demand in the U.S. and Japan [1] Group 2 - For the fiscal year 2024, Toyota's operating profit is projected to decline by 12% compared to the previous record level, with an adjusted forecast of 4.7 trillion yen [2] - Analysts estimate that operating profit for FY2025 could decrease by 800 billion yen due to tariffs affecting exports from Japan to the U.S. [3] - Toyota is considering producing the next generation of its popular RAV4 SUV in the U.S. to mitigate risks from tariffs and exchange rates [3] Group 3 - Toyota holds approximately 24% of Toyota Industries, which in turn owns about 9% of Toyota, along with over 5% of Denso, another major supplier [4] - Additional investments in suppliers may be viewed negatively by investors, while efforts to address cross-shareholding issues could be seen positively [4]