Nidec Corp. launched an unsolicited takeover bid for Makino Milling Machine Co., offering to buy the Japanese precision toolmaker for 250 billion yen ($1.6 billion) as part of its aggressive expansion in the machine tool sector.
The motor manufacturer plans to pay 11,000 yen per share, representing a 42% premium to Makino’s last closing price. The offer, made without consulting Makino’s management, aims to acquire at least 50% of the company’s outstanding shares.
The move aligns with Nidec’s strategy to dominate the global machine tool industry, with Chairman Shigenobu Nagamori targeting 1 trillion yen in revenue from this segment by 2035. The acquisition would give Nidec access to Makino’s expertise in high-precision equipment used in aerospace manufacturing.
This marks Nidec’s second hostile takeover attempt in the machine tool sector, following its successful acquisition of Takisawa in late 2023. The company cited increasing global competition and market fragmentation among Japanese manufacturers as key drivers for consolidation.
Nidec plans to begin the share purchase on April 4, 2025, after presenting its proposal to Makino’s management. The company defended its decision to announce the bid without prior consultation, saying it follows Japan’s 2023 corporate takeover guidelines emphasizing transparency.
