Nidec Corp, a major Japanese electronics company, announced on Thursday that it would withdraw its bid to acquire Makino Milling Machine. The decision comes after Makino signaled its intention to use a “poison pill” defense strategy against the hostile takeover.
In a statement, Nidec confirmed that its board had decided to cancel the tender offer, which was initially made on April 4, effective Friday. The company explained that continuing with the offer would be “significantly economically unreasonable” if Makino went ahead with its defensive measures.
Nidec had proposed purchasing Makino Milling at 11,000 yen per share, a deal that valued the company at 257 billion yen, or approximately $1.78 billion. Makino Milling’s stock price closed down by 0.36% on Thursday, at 11,090 yen.
