Nikkei Inc. will remove Nidec Corp. from its benchmark index on November 5, replacing the embattled motor manufacturer with Ibiden Co., according to an announcement made Monday. The reshuffle follows the Tokyo Stock Exchange’s decision to designate Nidec as a security on special alert.
The Kyoto-based company has been engulfed in an accounting crisis that has wiped out roughly a third of its market value this year. Investigations revealed suspected improper accounting practices involving multiple subsidiaries, including an Italian unit that mislabeled Chinese-made motors to evade U.S. tariffs. The company faces potential penalties ranging from ¥5 billion to ¥33.6 billion ($33 million to $220 million).
Nidec withdrew its full-year earnings guidance last week and scrapped a ¥35 billion share buyback program. The company’s auditors issued a disclaimer of opinion on its fiscal 2025 financial statements, citing insufficient evidence to verify accuracy while investigations continue.
Ibiden, which manufactures IC package substrates and printed circuit boards for data centers and automotive applications, will take Nidec’s spot in the 225-stock index. The change marks a rare mid-year adjustment triggered by regulatory concerns rather than regular rebalancing.
The special alert designation starts a lengthy process where Nidec must demonstrate adequate internal controls or face potential delisting.
