Global private equity firm Carlyle is in advanced discussions with Japan’s Makino Milling Machine as a potential white knight acquirer, as the company seeks to fend off a JPY257bn ($1.81bn) unsolicited takeover bid from Nidec Corporation, according to an report by Reuters.
The report cites four unnamed sources familiar with the matter as revealing the discussion after Nidec formally launched its tender offer on 4 April , proposing to acquire Makino shares at JPY11,000 apiece – a move that prompted Makino’s board to adopt a poison pill defence strategy in a bid to protect its independence. The defence would issue free stock warrants to existing shareholders to dilute Nidec’s potential stake, should the takeover move forward.
Makino is currently in talks with several potential alternative suitors, including Carlyle and MBK Partners. However, sources said that Nippon Sangyo Suishin Kiko Group (NSSK), previously interested, has exited the race. It remains unclear whether Carlyle intends to proceed with a formal bid, with one source noting the firm’s increasing caution in light of recent US tariff announcements and global trade volatility.
Makino has urged shareholders to withhold support for Nidec’s offer, arguing that negotiations with alternative, more aligned buyers are still underway and that rushing into a deal would not allow sufficient time for proper consideration.
In a further escalation, Nidec has filed for a court injunction to block Makino’s poison pill defence.
