Japan's Nippon Telegraph and Telephone Corporation (NTT) has announced plans to make its IT services subsidiary, NTT Data, a wholly owned unit through a tender offer valued at approximately 2.3 trillion yen (around $20.9 billion). This move aims to enhance management efficiency by ending the parent-subsidiary dual listing and to strengthen NTT's global growth strategy centered on IT, particularly in data center operations driven by rising demand for generative AI. NTT Data's shares surged to a limit-up price of 3,492 yen following the announcement. The acquisition will support NTT Data's overseas expansion and reinforce its position as a core part of NTT's enterprise IT business. Additionally, NTT plans a share buyback of up to 200 billion yen to bolster the Japanese market. This strategic consolidation is seen as part of a broader trend of buyouts in Japan's corporate sector.