Nidec Corporation has responded to a labor union inquiry about its ¥257 billion ($1.6 billion) unsolicited takeover bid for Makino Milling Machine, but stopped short of addressing specific concerns, instead requesting direct talks with union representatives.
In a letter dated April 3, Nidec President Mitsuya Kishida acknowledged receipt of the March 31 inquiry from JAM Makino Labor Union, which has publicly opposed the acquisition. The motor manufacturer noted that some questions had been previously addressed during a March 4 meeting with union directors.
The takeover attempt, which offers a 42% premium over Makino’s share price before the announcement, would be Nidec’s largest acquisition to date if successful. The tender offer is scheduled to begin on April 4, though Makino has requested postponement until May 9 or later as it evaluates competing proposals from other parties, including MBK Partners and NSSK Group.
The union’s resistance underscores ongoing concerns about the business rationale behind Nidec’s acquisition plan. Makino, known for its precision machine tools, has sent multiple letters seeking clarity on how the deal would impact corporate value and shareholder interests.
Nidec indicated it would continue to “sincerely consider” the union’s concerns and proposed organizing a meeting between its management team and union leadership, though no specific timeline was provided.
