Who dares, wins? This is apparently the motto of Nidec Corp., the world's leading manufacturer of mini motors. The company from Kyoto has made an acquisition offer of 257.3 billion yen (equivalent to 1.6 billion US dollars) for Makino Milling Machine Co. – causing a stir in Japan's tradition-conscious economy. The offered price: 11,000 yen per share, a hefty 42% above Thursday's closing price.
Even before the stock exchanges could react, Makino's shares remained unchanged due to an excess of buy orders, while Nidec's own shares rose by up to 2% in Tokyo. The message was clear: the market believes in Nidec's aggressive move – even if it is risky.
New Leadership, New Strategy
Nidec is known for its precision and automotive motors, but is facing falling prices in the fiercely competitive Chinese electric vehicle industry and stagnant demand for hard disks. Under the new leadership of CEO Mitsuya Kishida - who took over in April from the billionaire company founder Shigenobu Nagamori - the company is seeking more lucrative growth areas. And this is where Makino comes into play.
Makino Milling, an important supplier for robotics giants such as Daifuku and Fanuc, opens the door for Nidec to high-margin industries. This could be a crucial step toward Nagamori's ambitious goal of achieving an annual sales revenue of 10 trillion yen by March 2031. For this, Nidec is ready to dig deep: The company had previously announced plans to spend up to 1 trillion yen on strategic acquisitions.
An Unusual Coup in Japan's Economy
But the offer is remarkable not only because of the amount. In Japan, unsolicited takeovers—also known as hostile takeovers—are rare and often frowned upon. However, Nidec is not new to this terrain. Just last year, the company ventured a similar move with Takisawa Machine Tool Co., which eventually agreed.
The Makino case, however, could become more complex. So far, there have been no discussions between the two companies. Nidec plans to seek the approval of Makino's board, but makes it unequivocally clear that it would proceed with the takeover even without consent – provided the conditions are right. A clear declaration of war.
Market and Power Play
What is driving Nidec to such an aggressive step? Experts see it as a combination of strategic necessity and market positioning. The fierce price competition in China has shown that Nidec needs to diversify its portfolio. Acquiring Makino would not only open up new business fields but also reduce dependence on volatile markets like the automotive industry.
At the same time, the move sends a clear message: Nidec is ready to challenge the traditionally conservative Japanese business environment to expand its global dominance. Whether Makino fends off or yields to this attack remains to be seen. One thing is certain, however: Japan's economy will closely follow this development – and Nidec has once again positioned itself as an engine of change.
