Nidec Corporation Abandons Bid for Makino Milling Machine Co., Ltd.

In a surprise move, Nidec Corporation has withdrawn its tender offer to acquire Makino Milling Machine Co., Ltd. The decision marks a significant shift in the company’s strategy, following a bold countermove by Makino to protect its independence.

Makino had threatened to employ a “poison pill” takeover defense, a last-resort measure designed to make the acquisition economically unviable. This move was seen as a clear warning to Nidec, signaling that the company would not go down without a fight. The threat of the “poison pill” appears to have been enough to persuade Nidec that the acquisition was no longer worth pursuing.

The withdrawal of the offer has sent shockwaves through the market, with Makino’s shares plummeting by a staggering 21% on record. This decline reflects the significant uncertainty and risk that had been associated with the takeover bid. The reversal of Nidec’s earlier bid, which valued Makino at approximately $1.8 billion, marks the end of an unsolicited takeover plan that had been in the works for some time.

The implications of this move are far-reaching, with potential consequences for both Nidec and Makino. While the exact motivations behind Nidec’s decision remain unclear, it is evident that the company has been forced to reassess its priorities and adjust to a changing market landscape. For Makino, the outcome represents a significant victory, as the company has successfully defended its independence and maintained control over its own destiny.

Key Takeaways:

  • Nidec Corporation has withdrawn its tender offer to acquire Makino Milling Machine Co., Ltd.
  • Makino had threatened to employ a “poison pill” takeover defense to protect its independence.
  • The withdrawal of the offer has led to a 21% decline in Makino’s shares on record.
  • The reversal of Nidec’s earlier bid marks the end of an unsolicited takeover plan valued at approximately $1.8 billion.
  • The implications of this move are far-reaching, with potential consequences for both Nidec and Makino.