Investing.com– Kyoto-based precision motor manufacturer Nidec Corp (TYO:) announced plans to launch a 257 billion yen ($1.6 billion) tender offer to acquire an industrial gear supplier Makino Milling Machine Co. Ltd (YOU:).

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

Nidec did not discuss the offer with Makino’s board and plans to proceed even without its approval, as long as regulatory conditions are met. The tender offer is scheduled to be launched on April 4 after Nidec clears regulatory processes, the company said.

Makino shares were flat on Friday, while Nidec’s stock jumped more than 5%.

The offer is in line with Nidec’s strategy to expand into higher-margin growth sectors as it faces challenges such as low demand for hard drives and intense competition in China’s electric vehicle market.

Nidec, the world’s leading manufacturer of mini motors, continues to consolidate the industry through aggressive acquisitions under the leadership of founder Shigenobu Nagamori. While Nagamori stepped down as CEO in April, his successor Mitsuya Kishida continues to push the company’s ambitious growth targets.

This move is not Nidec’s first unsolicited takeover. In 2022, the company made a counter bid for Takisawa Machine Tool Co., which ultimately agreed to the takeover. The Japanese government, aiming to promote industry consolidation, issued M&A guidelines last year encouraging such takeovers.

While the company is open to talks with Makino’s board, Nidec has made it clear that it intends to go ahead with the bid regardless of Makino’s initial response.