Nidec's Takeover Bid for Makino Milling: Over 41% Expect a Negative Impact – Japan Die & Mold Industry Association
- Share :
The Japan Die & Mold Industry Association released a survey revealing that over 50% of its members expect a negative impact from Nidec’s takeover bid for Makino Milling. Meanwhile, Makino Milling expressed confusion over pressure from Nidec and affirmed that it is considering alternative options beyond the proposal.
February 26, 2025 - The Japan Die & Mold Industry Association released the results of a survey among its member companies regarding Nidec’s takeover bid for Makino Milling Machine Co., Ltd. When asked about the potential impact of the acquisition on their businesses, the most common response (41.4%) was that it would have a "negative impact," followed by "no impact" at 37.9% and "very negative impact" at 17.2%. This means that more than 50% of respondents anticipate a negative outcome.
Regarding perceptions of the acquisition, 46.0% of respondents described it as "bad," while 29.9% labeled it "very bad," meaning that over 70% of the surveyed companies viewed the takeover bid unfavorably.
The Japan Die & Mold Industry Association consists of die and mold manufacturers that rely on machine tools. Many of its members have business relationships with Makino Milling Machine, raising concerns about the future supply of machinery, equipment, and after-sales service. The survey gathered 87 responses, and while detailed written opinions were collected, they were not disclosed publicly.
Makino Milling’s customers have expressed mixed reactions to the proposed acquisition. Some clients have suggested halting business with Makino if the acquisition goes through, citing concerns that Makino’s products would compete directly with Nidec’s offerings. Additionally, the China Mold Industry Association and other similar organizations in China have raised concerns that the acquisition could threaten the independence of the Makino brand.
On the other hand, Nidec’s Executive Vice President, Takamitsu Araki, recently visited the China Mold Industry Association to explain the situation, stating that "the matter has been cleared up."
| Advertisement | |
|
|
Makino Rejects "Unilateral Pressure" from Nidec
On the 26th, Makino Milling Machine Co., Ltd. released a statement expressing concern over Nidec’s approach, stating that it was "confused by the unilateral pressure being applied to accept the proposal."
Nidec had released a document on the 25th outlining the process of the takeover bid and its rationale. Makino Milling, however, stated that it is still evaluating various strategic options, including Nidec’s proposal as well as other alternatives. The company expressed confusion over Nidec’s assertion that its proposal was the best course of action.
Ensuring Transparency in M&A – Nidec and Makino Discuss Growth Strategies
Key questions and answers from Nidec’s press conference on the 26th:
- Q: Was there prior discussion with Makino Milling before announcing the tender offer?
- Takamitsu Araki, Senior Managing Executive Officer: "This is an extremely fair M&A process. It ensures transparency for stakeholders, particularly shareholders, and provides an appropriate opportunity for sale."
- Q: What are your thoughts on Makino Milling’s new business plan for the fiscal year ending March 2030?
- Araki: "The plan includes more detailed measures than before, which is very helpful. However, it is based on the assumption that Makino will continue to grow independently. Even if the company’s value increases through independent growth, synergies will be further enhanced if Makino joins the Nidec Group."
- Q: Will you be meeting with Makino Milling’s management in early March?
- Araki: "Due to a lack of substantive communication, we haven’t been able to discuss key issues. We would like to meet more frequently and improve communication."
- Tatsuya Nishimoto, Executive Vice President: "We haven’t been able to communicate sufficiently yet. I want to clarify any concerns and provide the necessary explanations."
