Toyota Motor Corp. is planning to unwind approximately ¥3tn in strategic shareholdings held by banks and financial institutions, equivalent to around $19bn, Reuters reported, citing people familiar with the matter.

The proposed sale would mark a significant acceleration of Toyota’s effort to dismantle cross-shareholdings, a process initiated in 2024 following Japanese government reforms designed to enhance corporate governance, boost investor returns, and encourage fair competition.

The value of the divestment could increase depending on shareholder participation. The timing and scale remain subject to change and the plan could still be revised or abandoned. A Toyota spokesperson declined to comment.

Bloomberg News previously reported that Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group planned to divest approximately ¥1.32tn in Toyota holdings as part of broader reforms.

The move coincides with a scheduled revision of Japan’s Corporate Governance Code this year. However, broader reform across Japan’s corporate landscape has progressed unevenly.

Separately, Toyota’s attempt to privatise Toyota Industries Corp. has drawn scrutiny. The bid, led by Chairman Akio Toyoda, has faced opposition from activist investor Elliott Investment Management. Toyota Industries recently stated the Toyota group remained approximately 9% short of the two-thirds majority required to initiate a squeeze-out.

For global investors, the proposed $19bn unwind underscores the scale of Japan’s corporate governance shift and signals continued momentum behind efforts to simplify ownership structures within major industrial groups.

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