Nidec Withdraws Takeover Bid for Makino After Court Rejects Injunction

NIDEC Withdraws TOB Amid Concerns Over Makino’s Countermeasures

Latest Update May 29, 2025

Nidec Halts Takeover Bid for Makino Following Court Rejection of Injunction

Kyoto, May 8, 2025 - Nidec announced on the 8th that it would withdraw its takeover bid (tender offer) for Makino Milling Machine, effective as of the 9th. The company had filed for a provisional injunction with the Tokyo District Court to halt the countermeasures introduced by Makino, but the request was denied on the 7th. Nidec subsequently determined that proceeding with the takeover bid may lack economic rationality. Details will be disclosed in a notice to be submitted to the Director-General of the Kanto Regional Financial Bureau on the 9th.

There is little chance that Nidec will reinitiate the takeover bid, marking its withdrawal from the acquisition of Makino Milling Machine. Nidec’s proposed “acquisition without consent” was not approved by Makino and has now been abandoned.

Nidec had previously criticized Makino's countermeasures, stating, “If these countermeasures are allowed, takeover proposals not aligned with the management’s wishes will be easily obstructed. It is a powerful measure that could inflict enormous economic damage on our company.” Given the potential risk of harm, Nidec has decided to withdraw.

At the end of December 2024, Nidec announced plans to acquire Makino Milling without prior consultation. Although Makino requested a delay to the start of the TOB, this was rejected, and the offer commenced on April 4, 2025. On April 10, Makino publicly opposed the TOB and introduced a countermeasure involving the free allocation of stock acquisition rights.

Nidec has declared its intention to increase its machine tool sales fivefold to 600 billion yen by 2030—without relying on Makino Milling. At a press conference held to coincide with the launch of the TOB, Tatsuya Nishimoto, head of the Machinery Business Division, stated, “We have a scenario to achieve 600 billion yen in sales even if the acquisition doesn’t succeed.” Nidec believes that achieving sustainable growth requires a certain scale of sales and profit margins, along with diversified markets and industries.

Even though the Makino acquisition has been scrapped, Nidec’s M&A offensive in the machine tool industry is expected to continue.