Nidec Corp. offers 257.3 billion yen ($1.6 billion) to take over machine tool builder Makino Milling Machine Co., initiating a rare unsolicited takeover of a Japanese company.
The Kyoto-based manufacturer of precision and automotive motors announced that it is offering Makino Milling 11,000 yen per share.
Against the background of this news, the value of Nidec securities showed an increase of 5.3%. This company is the world’s largest manufacturer of mini motors. Currently, the brand is facing such negative circumstances as low demand for hard drives and cut-throat prices in the Chinese electric vehicle market. The company seeks entry into higher-margin areas of growth under new leadership.
Eighty-year-old Nidec founder Shigenobu Nagamori stepped aside in the spring, tasking Mitsuya Kishida as chief executive officer to advance the firm in the electric car motor sector.
Shigenobu Nagamori has announced his willingness to spend up to 1 trillion yen to reach sales of 10 trillion yen by March 2031.
The deal to acquire Makino Milling, if implemented, will be the largest in the history of Nidec.
Makino Milling supplies machine tools to the aerospace, automotive, semiconductor, and construction industries. According to media reports, the company’s clients are robot manufacturers Daifuku Co. and Fanuc Corp. The firm also supplies its products to Toyota Tsusho Corp. and Nikon Corp.
Nidec plans to go through with its tender offer if certain conditions are met, it said in a statement. It expects its tender to begin on April 4.
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