Acquisition could put Nidec in direct competition with industry leaders like Mazak, DMG MORI, and Okuma.
Nidec Corporation Global, a global leader in precision motors and automation, has made a bold move to acquire Makino Milling Machine Co., Ltd. with an unsolicited ¥257 billion ($1.6 billion USD) tender offer, announced on 27 December 2024. The bid, originally set to launch on 4 April 2025, has been met with resistance from Makino, which has requested a delayed tender launch to 9 May 2025 and a higher acceptance threshold from 50% to two-thirds of shares.
As discussions continue, the potential acquisition would mark Nidec’s largest investment in the machine tool sector, further expanding its footprint after its successful takeovers of OKK Corporation and Takisawa Machine Tool Co.
Nidec’s strategic acquisitions and their impact
OKK Corporation was acquired in 2022 with an acquisition cost of ¥5.48 billion ($42 million USD) for a 66.655% stake. The acquisition brought vertical and horizontal machining centers and 5-axis machining centers into the product portfolio to strengthen Nidec’s high-precision milling and drilling capabilities.
Takisawa Machine Tool Co. was acquired in 2023 at ¥2 600 per share, totalling ¥16.6 billion ($110 million). The acquisition saw Nidec acquire an 86% stake acquired in November 2023 and was fully integrated by February 2024. CNC lathes, gang-type precision lathes, multi-tasking machines and industrial automation systems were brought into the product portfolio. The strategic value realised was that Nidec strengthened its position in precision turning, enhanced automation capabilities which were integrated into Nidec’s growing machine tool division of high-precision machining solutions.
PAMA S.p.A. was acquired in 2023 for an amount of ¥15 billion ($108 million) on 1 February 2023, making PAMA a wholly owned subsidiary of Nidec. The acquisition brought boring and milling machines, 5-face machining centers, large vertical and horizontal machining centers and industrial automation solutions into the technology portfolio. The strategic value was that it expanded Nidec’s capabilities in large-scale precision machining, as well as strengthening its presence in Europe, North America and China and complemented existing product lines with high-end boring and milling solutions.
Acquisition of Mitsubishi Heavy Industries Machine Tool’s machine tools, cutting tools, and related products
In August 2021 Nidec announced that it had completed the acquisitions of the shares of Mitsubishi Heavy Industries Machine Tool Co., Ltd. (Mitsubishi Heavy Industries Machine Tool), a company that designs, manufactures, and sells machine tools, cutting tools, and related products, from Mitsubishi Heavy Industries, Ltd, including all the Mitsubishi Heavy Industries Group-owned shares of three overseas subsidiaries specialised in the machine tool business and the machine tool business run by overseas subsidiaries.
What’s next?
If successful, the Makino acquisition would give Nidec an even stronger position in high-precision milling and automation, putting it in direct competition with industry leaders like Mazak, DMG MORI, and Okuma. With machine tool consolidation accelerating, this deal could reshape the competitive dynamics of the industry.
Questions to be asked include how will Nidec’s aggressive expansion impact the global machine tool market and will Makino remain independent?
