Nidec Makes $1.6 Billion Bid for Makino Milling
Deal News | Feb 19, 2025 | EIN
Japanese manufacturing powerhouse Nidec has launched a significant strategic maneuver by placing a $1.6 billion bid for Makino Milling Machine. This move sees Nidec, represented by legal heavyweights TMI Associates, Freshfields, and Davis Polk & Wardwell, leaning into recent reforms designed to destigmatize unsolicited bids in Japan. Makino Milling has engaged Nishimura & Asahi and Sullivan & Cromwell to reply to this offer, while Anderson Mori & Tomotsune advises a special committee reviewing the proposal. Nidec aims to complete the regulatory processes and initiate the tender offer by early April, irrespective of Makino's consent. This is part of a broader trend fueled by Tokyo exchange reforms encouraging mergers, share buybacks, and management buyouts.
Sectors
- Manufacturing
- Legal Services
Geography
- Japan – Nidec and Makino Milling are both Japanese companies, and the article discusses M&A activities within the Japanese market context, alongside commentary on reform efforts by the Tokyo exchange.
Industry
- Manufacturing – The article revolves around Nidec, a leading player in precision motor manufacturing, and Makino Milling Machine, a specialist in milling equipment, highlighting their roles in the manufacturing sector.
- Legal Services – The involvement of numerous law firms such as TMI Associates, Freshfields, Davis Polk & Wardwell, Nishimura & Asahi, and Sullivan & Cromwell underscores the role of legal services in facilitating M&A transactions.
Financials
- $1.6 billion – The bid amount that Nidec proposes to acquire Makino Milling.
- 257 billion yen – The equivalent value of the $1.6 billion bid in Japanese yen.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nidec | Bidding Company | Company | A Japanese multinational corporation and leading manufacturer of precision motors. |
| Makino Milling Machine | Target Company | Company | A Japanese company specializing in milling machinery and solutions. |
| TMI Associates | Legal Advisor for Nidec | Company | A leading Japanese law firm advising Nidec on its bid for Makino Milling. |
| Freshfields | Legal Advisor for Nidec | Company | A global law firm assisting Nidec with its unsolicited bid. |
| Davis Polk & Wardwell | Legal Advisor for Nidec | Company | An international law firm providing legal services to Nidec. |
| Nishimura & Asahi | Legal Advisor for Makino | Company | A top-tier Japanese law firm advising Makino Milling in reviewing the bid. |
| Sullivan & Cromwell | Legal Advisor for Makino | Company | An international law firm assisting Makino Milling. |
| Anderson Mori & Tomotsune | Advisor for Makino's Special Committee | Company | A respected Japanese law firm advising the special committee reviewing Nidec's offer. |
| Shigenobu Nagamori | Leader of Nidec | Person | Founder and head of Nidec, leading the company's strategic M&A initiatives. |