Akio Toyoda Is Said to Plan Record Toyota Industries Buyout (3)

Toyota Motor Corp. Chairman Akio Toyoda has proposed a buyout of Toyota Industries Corp., people familiar with the matter said, seeking to consolidate his grip on Japan’s biggest business empire as a wave of merger and acquisition activity roils the country.

The proposal values Toyota Industries, which makes looms for textile manufacturing as well as parts for Toyota’s cars, at ¥6 trillion ($42 billion), one of the people said, a roughly 40% premium over its market capitalization at the close Friday.

Akio Toyoda

Photographer: Bridget Bennett/Bloomberg

Toyota Industries, the company founded by Toyoda’s great-grandfather Sakichi that ultimately birthed the world’s No. 1 ...