Nidec Offers $1.6 Billion for Makino in Rare Unsolicited Bid

(Bloomberg) — Nidec Corp. is offering ¥257.3 billion ($1.6 billion) to take over industrial gear supplier Makino Milling Machine Co., initiating a rare unsolicited takeover of a Japanese company.

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The Kyoto-based maker of precision and automotive motors said it’s offering ¥11,000 per share for Makino, a 42% premium to the company’s Thursday close. Makino’s shares went untraded Friday morning because of a glut of buy orders, while Nidec’s stock rose as much as 2% in Tokyo.

Nidec, the world’s top maker of mini motors, is fighting both lackluster demand for hard drives and cut-throat prices in China’s electric-vehicle market. It’s been seeking entry into higher-margin areas of growth under new leadership. Billionaire founder Shigenobu Nagamori stepped aside in April, promoting Mitsuya Kishida to succeed him as chief executive officer.

The company previously said it was prepared to spend as much as ¥1 trillion to achieve Nagamori’s long-touted goal of ¥10 trillion in sales by March 2031. Makino Milling supplies industrial robot makers including Daifuku Co. and Fanuc Corp., according to data compiled by Bloomberg.

Nidec said it hadn’t held discussions with Makino Milling yet. While it will try to win the company’s board over, it plans to go through with its tender offer if certain conditions are met.

It’s not the first time Nidec has attempted a potentially hostile takeover, in a country where such deals are usually agreed-upon beforehand. Last year, it announced an unsolicited bid for Takisawa Machine Tool Co., which eventually consented to the deal.

–With assistance from Isabel Reynolds.

(Updates with share reaction from the second paragraph)