# Denso to sell off cross-shareholdings and use proceeds on M&A
Published: 2024-04-26
Category: Headlines
Category URL: https://business.express/category/headlines/
Meta Title: Denso to Sell Cross-Shareholdings for M&A Expansion
Meta Description: Denso, a Toyota supplier, aims to fund acquisitions by selling off all cross-shareholdings, aligning with industry expectations for increased competitiveness.
URL: https://business.express/denso-to-sell-off-cross-shareholdings-and-use-proceeds-on-ma/

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qsmfaw001wwirgq3ggueqg/images/2024-04-26t102218z1lynxnpek3p0c2rtroptp4japan-autos-denso-1737026213697-compressed.webp)

TOKYO (Reuters) – Toyota Motor supplier Denso plans to eventually sell all of its cross-shareholdings, its president said on Friday, as the company looks to fund acquisitions and other investments.

### WHY IT’S IMPORTANT

Investors have long pressured Japanese companies to sell-off cross-shareholdings and put their capital to better use. Firms have been gradually selling down their stakes, thanks in part to a governance push by the Tokyo Stock Exchange and the government.

Toyota and some other of its group companies last year sold around 8% of Denso, a move that was seen as a critical first step by the sprawling Toyota Group and heightening expectation of more sales to come.

### CONTEXT

\\* Denso President Shinnosuke Hayashi told a briefing the supplier of auto components will continue selling its cross-shareholdings, with the intent to sell all of them, after holding talks with the companies involved.

\\* Denso, which doesn’t disclose the size of its cross-shareholdings, in March announced plans to sell all of its 9.1% stake in Toyota Industries.

\\* It has also cut holdings in JTEKT, another group company.

### KEY QUOTES

“Basically, we are not going to hold a portion of the shares, but rather we are moving towards selling all of our shares,” Executive Vice President Yasushi Matsui told the briefing.

\\* Hayashi said the elimination of cross-shareholdings was important for increasing the competitiveness of the entire industry.

### BY THE NUMBERS

\\* Denso reported a 11% decline in full-year operating profit on Friday.

\\* It forecast an 88% profit increase for the year to March, for 714 billion yen ($4.6 billion).

($1 = 156.6300 yen)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---