Sunday, July 14, 2024
HomeBusinessTwo of Japan's largest banks will divest ¥1.3 trillion of Toyota shares

Two of Japan’s largest banks will divest ¥1.3 trillion of Toyota shares

Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group will begin divesting strategic stakes worth ¥1.32 trillion ($8.5 billion) in Toyota, people with knowledge of the matter said. This is the strongest sign yet that Japan’s major companies are serious about winding down their vast networks. of crossed shares.

The banks will sell in phases and benefit from Toyota’s share buyback plan, said the people, who asked not to be identified because the information is not public. The world’s No. 1 automaker announced a ¥1 trillion buyback program on May 8, which represents about 3% of its shares and is significantly larger than its previous buybacks.

The wind-down is being done to minimize the impact on the company’s share price, the people said. Although the government has urged Japan’s corporate sector to unwind cross-shareholdings built up over decades to strengthen business ties, the largest banks and companies have been slow to do so. Given its size and significance, the Toyota deal could trigger a broader wave of loosening equity relations in Japan.

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