Nidec Corp's Tender Offer for Makino Milling Machine Co

Kyoto-based precision motor manufacturer Nidec Corp (TYO:6594) has announced plans to launch a ¥257 billion ($1.6 billion) tender offer to acquire Makino Milling Machine Co Ltd (TYO:6135).

The offer is priced at ¥11,000 per share, representing a 42% premium to Makino’s closing price on Thursday.

Nidec did not discuss the offer with Makino’s board and plans to proceed even without approval, pending regulatory conditions. The tender offer is scheduled to launch on April 4 after Nidec clears regulatory processes.

Shares of Makino remained untraded on Friday, while Nidec’s stock jumped more than 5%.

The offer aligns with Nidec’s strategy to expand into higher-margin growth sectors as it faces challenges such as subdued demand for hard drives and intense competition in China’s electric vehicle market.

Nidec, the world’s leading manufacturer of mini motors, has been pursuing industry consolidation through aggressive acquisitions under founder Shigenobu Nagamori, who stepped down as CEO in April. His successor, Mitsuya Kishida, continues to push ambitious growth targets.

This is not Nidec's first unsolicited takeover attempt; in 2022, the company made a hostile bid for Takisawa Machine Tool Co., which later agreed to the acquisition. The Japanese government has issued M&A guidelines encouraging such takeovers to promote industry consolidation.

While Nidec is open to negotiating with Makino’s board, it intends to proceed with the bid regardless of Makino’s initial response.