Investing.com– Kyoto-based precision motor producer Nidec Corp (TYO:) has introduced plans to launch a 257 billion yen ($1.6 billion) tender provide to accumulate industrial gear provider Makino Milling Machine Co Ltd (TYO:).

The provide, priced at ¥11,000 per share, represents a 42% premium to Makino’s closing price on Thursday.

Nidec didn’t talk about the provide with Makino’s board and plans to proceed even with out its approval, offered regulatory situations are met. The tender provide is scheduled to launch on April 4 after Nidec clears regulatory processes, the corporate mentioned.

Shares of Makino had been untraded Friday, whereas Nidec’s inventory jumped greater than 5%.

The provide aligns with Nidec’s technique to increase into higher-margin progress sectors because it faces challenges comparable to subdued demand for exhausting drives and intense competitors in China’s electrical car market.

Nidec, the world’s main producer of mini motors, has been pursuing trade consolidation by aggressive acquisitions beneath the management of founder Shigenobu Nagamori. Whereas Nagamori stepped down as CEO in April, his successor Mitsuya Kishida continues to push the corporate’s bold progress targets.

This transfer shouldn’t be Nidec’s first unsolicited takeover. In 2022, the corporate made a hostile bid for Takisawa Machine Instrument Co., which ultimately agreed to the acquisition. The Japanese authorities, aiming to advertise trade consolidation, issued M&A tips final yr encouraging such takeovers.

Whereas the corporate is open to negotiating with Makino’s board, Nidec has made it clear that it intends to proceed with the bid no matter Makino’s preliminary response.