Breaking News! Nidec Acquires Makino at a 42% Premium

Today, we bring you an exciting news: Japanese manufacturing giant Nidec Corporation plans to acquire the well-known machine tool manufacturer Makino Milling Machine Co., Ltd. (Mikino) for 257 billion yen (about 1.6 billion US dollars). This acquisition price is 42% higher than the closing price of Makino on the previous trading day, showing Nidec's ambition in the machine tool field.

Nidec, as a leading global precision motor manufacturer, has faced the dilemma of weak demand for hard drives and fierce price competition in the Chinese electric vehicle market in recent years, which has squeezed its profit margins. Therefore, Nidec chose to turn its attention to the more profitable machine tool industry. Since 2021, it has begun a series of acquisitions in this field, gradually forming a full coverage from large machining centers to small and medium-sized precision machine tools, and its strength ranks fourth in the Japanese machine tool industry.

The acquisition of Makino means that Nidec has taken an important step in strengthening its machine tool business. If successful, its machine tool product sales will be pushed from the current 120 billion yen to about 350 billion yen, close to the 500 billion yen level of industry leader Mori Seiki. This move not only accelerated Nidec's integration process in the machine tool field, but also fully responded to the policy background of the Japanese government to encourage corporate mergers and acquisitions and promote industry integration.

Combined with the current dynamics of the machine tool industry and the robot market, the future Manufacturing 4.0 era seems to be a frenzy of technology and capital. What kind of sparks will the merger of Nidec and Makino bring? What kind of industry changes will China Enterprise Dynamics' robot procurement bring? Let us look forward to it together!