Toyota has agreed to raise its offer to take Toyota Industries private by nearly 10%, increasing the deal value to $38 billion and conceding to pressure from activist investor Elliott Management. The carmaker will pay ¥20,600 per share, up from ¥16,300, valuing the subsidiary at ¥5.9 trillion. This concession follows months of public campaigns by Elliott, which owns 7.7% of Toyota Industries, arguing the initial offer undervalued the company.

The activist fund, which has also targeted SoftBank and Toshiba, claims its standalone plan could unlock ¥40,000 per share in long-term value. The revised bid, contingent on lender commitments, forces Toyota to extend its tender deadline again. While the share price has consistently traded above the original offer, Elliott’s victory signals potential shifts in Japan’s corporate governance, emboldening activists in similar cross-holding unwind deals.