Japanese machine tool manufacturer Nidec and Takisawa Machine Tools have announced that the two companies have reached an agreement for Nidec to acquire Takisawa.

Nidec proposed the buyout in July, without obtaining prior consent from Takisawa’s management. That management, which had not previously commented publicly on the proposal, decided to accept the move on Wednesday, averting a hostile takeover.

Nidec launched a tender offer on at 2 600 yen per share, with no upper limit set. If shareholders agree to its terms, Takisawa will become a subsidiary of Nidec and will likely be delisted.

The manufacturer of lathes, which has a strong presence in automotive parts machining, is expected to strengthen Nidec’s machine tool business.

Nidec has been stepping up its acquisitions to strengthen that part of its business. From January to March last year, Nidec proposed a capital alliance with Takisawa. Takisawa broke off negotiations at that time, leading to Nidec’s move in July to make a tender offer for the company’s shares without the consent of Takisawa’s management.

Following the proposal, Takisawa wrestled with whether to accept or reject it, making multiple requests for information from Nidec, such how it would deal with Takisawa’s employees following an acquisition.

Nidec Machine Tool Corporation is a group company of Nidec Corporation. Nidec manufactures and sells hard disk drive (HDD) motors used in personal computers and data centers, tactile devices used in smartphones and cellphones, motors for OA equipment, motors for CD & DVD drives, and other products.

In addition to electric power steering motors, which enjoy one of the world’s largest market shares, Nidec manufacture and sell automotive products, such as pumps and sensors for advanced driver-assistance systems (ADAS), traction motors for EV and other products.

The appliance, commercial and industrial products include motors for home appliances such as washing machines and air conditioners, motors for commercial products like elevators, and motors for ships and other industrial products.

Nidec also manufacture and sell electronic components such as switches, trimmer potentiometers, and sensors installed in industrial electronic machines, as well as optical components such as shutters for digital cameras, smartphones and mobile phones, and image stabilisers.