Toyota Motor Chairman Akio Toyoda Proposes $42 Bln Acquisition Of Toyota Industries: Report

(RTTNews) - Akio Toyoda, chairman of Toyota Motor Corp. (TM), has proposed to acquire supplier Toyota Industries Corp. in a 6 trillion yen or $42 billion deal, according to a Bloomberg report on Friday.

The proposed deal represents around a 40 percent premium to the share price of Toyota Industries as of Friday's close in Japan.

Toyota Industries produces looms for textile manufacturing and parts for Toyota's vehicles.

Toyota Industries has reportedly hired advisers and also formed a special committee to study the offer and make recommendations.

The deal is said to financed using Toyoda's personal funds and with loans from major Japanese banks.