TM - Japanese Mega Banks Plan $8.5B Toyota Stake Sale: Report | Benzinga
Mitsubishi UFJ Financial Group Inc. (NYSE:MUFG) and Sumitomo Mitsui Financial Group Inc. (NYSE:SMFG) are reportedly set to divest approximately ¥1.32 trillion ($8.5 billion) worth of strategic shareholdings in Toyota Motor Corp. (NYSE:TM).
The major move indicates a strong commitment by Japan’s major corporations to dismantle their extensive network of cross-held shares. This strategic unwinding is designed to mitigate any adverse effects on Toyota’s share price, reported Bloomberg.
The banks will divest in phases, leveraging Toyota’s recent buyback initiative. On May 8, Toyota announced a ¥1 trillion buyback plan, equivalent to about 3% of its stock, marking a substantial increase from previous repurchases.
The Japanese government has long advocated for reducing cross shareholdings, which were established ...