KYOTO, Japan, Aug. 03, 2021 (GLOBE NEWSWIRE) — Nidec Corporation ((TSE: 6594, OTC:NJDCY) (the “Company” or “Nidec”) announced today that it has completed yesterday, with certain exceptions, 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. (“Mitsubishi Heavy Industries”); all the Mitsubishi Heavy Industries Group-owned shares of three overseas subsidiaries specialized in machine tool business; and the machine tool business run by overseas subsidiaries (the “Stock Acquisition”). These acquisitions are based on the stock purchase agreement that the Company entered into with Mitsubishi Heavy Industries on February 5, 2021, as described in the Company’s press release, “Nidec to Acquire Mitsubishi Heavy Industries Machine Tool Co., Ltd.,” issued on the same day. Those companies finished with the Stock Acquisition are now Nidec’s subsidiaries, as outlined below.
The stock purchase of a company in India and another one in China, whose stocks have yet to be acquired at present, is scheduled to be completed by around the end of August 2021.
1. Outline of major subsidiaries
(1) Changes in company names
|Location||Current name||New name (plan)|
|Ritto, Japan||Mitsubishi Heavy Industries Machine Tool Co., Ltd.||Nidec Machine Tool Corporation|
|Changshu, China||Mitsubishi Heavy Industries, (Changshu) Machinery Co., Ltd.||Nidec Machine Tool (Changshu) Corporation|
|Ranipet, India||Mitsubishi Heavy Industries India Precision Tools Ltd.||Nidec India Precision Tools Ltd.|
|Harrison, USA||Federal Broach Holdings, LLC||No change.|
(2) New executives
|New company name (plan)||New executives (plan)|
|Nidec Machine Tool Corporation||Director and Chairman: Tatsuya Nishimoto
Director and Vice Chairman: Keiichiro Iwasaki
President and CEO: Kenichi Wakabayashi
Executive Vice President and CFO: Akinobu Samura
Director: Yoshihisa Kitao
Statutory Auditor: Hirotsugu Yoshii
Auditor: Kazuya Murakami
|Nidec Machine Tool (Changshu) Corporation||Board Chairman and President: Junji Usude
Director: Donghui Chen
Director: Akinobu Samura
Auditor: Yuki Shibata
|Nidec India Precision Tools Ltd.||Chairman & Managing Director: Munetaka Nomura
Director (Sales): Nallappan Valliappan
Director: Kenichi Wakabayashi
Director: Yoshinao Miyoshi
Director: Kazunori Konishi
Independent Director: Prafful Lalwani
Independent Director: Appan Priya
|Federal Broach Holdings, LLC||CEO: Danny L. Dennis
Executive Vice President: Takuya Narumi
Member of the Board: Kenichi Wakabayashi
Member of the Board: Jeffrey S. Williams
Member of the Board: Katsuhide Yabe
Member of the Board: Katsunori Nakamura
2. Purpose of the Stock Acquisition and Management Policies Going Forward
The acquisition of machine tool business achieves a mutual complement with our existing businesses. Synergies are expected particularly in the machinery business, element technology development, manufacturing, sales, and other areas of our group’s businesses.
Mitsubishi Heavy Industries Machine Tool started its business in 1936 for manufacturing of lathe in Hiroshima, Japan. Since then, Mitsubishi Heavy Industries Machine Tool has been a group company of Mitsubishi Heavy Industries and has grown its business, while supporting Japanese manufacturing for many years. Mitsubishi Heavy Industries Machine Tool, which designs, manufactures and sells machine tools, cutting tools and related products and provides after-sales services for the products, owns highly professional personnel in addition to its long-nurtured technologies. Mitsubishi Heavy Industries Machine Tool has top market share in Japan with its main products, which include a gear cutting machine and a gear grinding machine with high accuracy and efficiency, double-column-type machining centers and other large-size machine tools, and laser and semiconductor manufacturing equipment with unique cutting-edge technologies.
Nidec has a view of further expansion of machine tool business with Mitsubishi Heavy Industries Machine Tool, and believes that, with necessary investment, the business will be able to play a major global role in our group. It is our intention to mutually leverage the Nidec Group’s and Mitsubishi Heavy Industries Machine Tool’s respective technological capabilities, brand strength, and customer bases, to contribute to the further development of the global machine tool market.
3. Effect on Financial Performance for the Current Fiscal Year
The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2022. However, should there be any such impact, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the Transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.