TOKYO, Nov 29 Reuters Toyota and two affiliates will divest at least 8 of supplier Denso, the companies said on Wednesday, a 4 billion deal that sparked investor hopes the world39;s topselling automaker will shed more of its numerous crossshareholdings.

The share sale, which was first reported by Reuters on Tuesday, will be Japan39;s second biggest this year and the largest in the global auto industry in more than a decade, according to LSEG data.

Denso, the world39;s secondlargest maker of automotive components and a pillar of the Toyota group, will buy back some of its own shares in the open market to lessen the impact of the sale.

For investors, the deal has reinforced expectations that Japan39;s most influential company could accelerate sales of shareholdings in affiliates and partners, a practice known as crossshareholding. Investors, particularly foreign ones, say it hinders governance and hampers returns.

Companies have been slowly unwinding the holdings for years, but the trend gained momentum after the Tokyo Stock Exchange in March urged companies to make better use of their capital.

We know it39;s going to free up some of the capital being locked within the Toyota balance sheet. What39;s important is how they39;re going to utilise this freedup capital going forward, said James Hong, the head of mobility research at Macquarie.

Denso said Toyota and two group companies, Toyota Industries and Aisin, would sell their shares in the company to investors. They…