Toyota Motor has increased its offer to take Toyota Industries private by 15%, raising the bid to approximately $42 billion. The move comes after heavy criticism from activist investors and shareholders who argued the initial price undervalued the equipment maker. This revised proposal represents a significant premium over the original terms announced in May.

Activist funds, including Effissimo Capital, had built substantial stakes and publicly pushed back against the deal's structure. Taking the subsidiary private would simplify the sprawling keiretsu structure that has long defined Toyota's corporate governance. For decades, cross-shareholdings between the group's companies have complicated strategic decisions and masked true market valuations.

The board must now weigh whether this premium satisfies investors or invites further negotiation. The outcome will set a benchmark for future M&A deals involving Japan's industrial giants. Markets will watch closely for any competing bids or shareholder votes that could derail the transaction entirely.