Late Wednesday, Toyota Motor announced it had raised its tender offer for Toyota Industries to 18,800 yen per share, up from the 16,300 yen level proposed in June of last year. The revised offer values the all-cash transaction at just over ¥4.7 trillion, or more than $35 billion, making it one of the largest private-takeover bids in Japan’s corporate history. Toyota Motor’s renewed proposal follows calls from Toyota Industries’ board for a higher bid and reflects the carmaker’s commitment to consolidating its group structure and securing full control of its founding affiliate.

On Thursday, Toyota Industries’ shares surged 6.3% to close at 19,160 yen, exceeding the revised offer price and signaling market expectations of a further sweetening bid. Global equity research analyst Arun George noted that, despite representing an all-time high tender price, the offer remains below the midpoint of the independent adviser’s valuation range, suggesting Toyota Industries may still be undervalued. The share performance underscores investor confidence in Toyota Motor’s ability to improve terms, while also highlighting skepticism over whether the current bid sufficiently reflects the diverse portfolio of forklifts, engines and electronic components produced by Toyota Industries.