Toyota plans to push banks and insurance companies to sell $19 billion worth of shares

LootboxPhobia · 2026-02-26T04:54:18+00:00

Toyota is considering a strategic shareholding divestment plan of approximately 3 trillion yen, which is expected to encourage banks and insurance companies to sell their holdings and may be launched this year. This move is a response to regulatory pressure and a measure to improve capital efficiency, while Toyota is also considering share buybacks and secondary sales.

LootboxPhobia

2026-02-26 04:54:18

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Investing.com - According to Reuters on Thursday, citing sources familiar with the matter, Toyota (TYO:7203) is preparing a large-scale plan to unwind strategic holdings, potentially totaling around 3 trillion yen ($190 billion), which could become a milestone in Japan’s corporate governance reform.

Reports indicate that Toyota plans to encourage banks and insurance companies holding its shares to sell, with the process possibly starting as early as this year.

It is also reported that the final scale and timeline remain uncertain and may depend on investor demand; the plan could also be modified or canceled.

Reuters states that the company is considering using share buybacks to absorb some of the sold shares and is also reviewing secondary offerings to other investors.

Major shareholders include Sumitomo Mitsui Financial Group (NYSE:SMFG), Mitsubishi UFJ Financial Group (TYO:8306), and MS&AD Insurance Group Holdings (TYO:8725).

This move will highlight the increasing pressure from regulators and the Tokyo Stock Exchange to dismantle cross-shareholdings, a long-standing practice criticized for weakening capital discipline.

Toyota has previously committed to reducing such holdings amid investor calls for improved capital efficiency.

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