Toyo and Mitsubishi terminate alliance

Toyo Tires Corp. has announced the termination of its alliance with Mitsubishi Corp., with plans to repurchase shares from the trading company. The partnership agreement was signed in 2018, aiming to increase Toyo's sales, expand technological capabilities, improve resource accessibility, and boost production capacity using the funds raised.

"Both parties have concluded that the partnership objectives have been achieved," Toyo stated, adding that the company has established a management structure "capable of ensuring sustainable growth independently."

Toyo intends to repurchase 32 million of its own shares for up to 115 billion yen (720 million dollars). Currently, Mitsubishi holds just over 30 million Toyo shares and is the largest shareholder with a 20.01% stake. After the transaction, the largest share in Toyo (16.6%) will be held by The Master Trust Bank of Japan.

"Going forward, Toyo Tire and Mitsubishi will maintain a positive relationship to support further business development," Toyo emphasized.