Nidec shares jump as it proposes unsolicited $1.6 billion takeover bid for Makino By Investing.com
Investing.com– a precision engine manufacturer based in Kyoto Nidec Corp (TYO:) announced plans to launch a ¥257 billion ($1.6 billion) takeover bid for the industrial equipment supplier Makino Milling Machine Co Ltd (TYO:).
The offer, priced at ¥11,000 per share, represents a 42% premium to Makino’s closing price on Thursday.
Nidec has not discussed the offer with Makin’s management and plans to proceed even without its approval, provided regulatory conditions are met. The tender offer should be announced on April 4 after Nidec has resolved the regulatory processes, the company announced.
Makino shares were not traded on Friday, while Nidec’s stock jumped more than 5%.
The offer is in line with Nidec’s strategy of expanding into higher-margin growth sectors as it faces challenges such as reduced demand for hard drives and intense competition in China’s electric vehicle market.
Nidec, the world’s leading manufacturer of mini motors, has sought to consolidate the industry through aggressive acquisitions under the leadership of founder Shigenobu Nagamori. While Nagamori stepped down as CEO in April, his successor Mitsuya Kishida continues to push the company’s ambitious growth goals.
The move is not Nidec’s first arbitrary takeover. In 2022, the company made a hostile bid for Takisawa Machine Tool Co., which eventually agreed to the acquisition. The Japanese government, aiming to promote industry consolidation, issued merger and acquisition guidelines last year encouraging such takeovers.
While the company is open to negotiations with Makino’s management, Nidec has made it clear that it intends to proceed with the offer regardless of Makino’s initial response.
