Source: Sharecast
Under the terms of the transaction, Toyota's real estate unit Toyato Fudosan will launch a tender offer worth $26bn to acquire Toyota Industries shares at JPY16,300 each – 11% lower than the JPY18,400 closing price on Tuesday.
While the stock has surged around 40% since speculation first began in April, the deal was initially reported to be closer to $42bn.
Toyato Fudosan is putting up JPY180bn into the deal, while Toyota Motor will invest JPY700bn and the automaker's chairman Akio Toyoda will personally invest JPY1bn.
Toyota Industries, the largest maker of forklift trucks that also makes auto parts and industrial textile machinery, is currently one-quarter-owned by Toyota Motor, while itself holding a 9% interest in the car giant.
Bloomberg initially reported that a deal was in the works back in April, and comes at a time when the Japanese government is calling for larger conglomerates to unwind cross-shareholdings with subsidiaries.
"Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company," the companies said in a statement.