Japan Moves to Block MBK’s MAKINO Acquisition Over Defense Industry Concerns

The Japanese government has advised Asian investment fund MBK Partners to withdraw its tender offer (TOB) for Makino Milling Machine Co., Ltd., citing economic security concerns over the company’s machine tools, which are widely used in Japan’s defense industry

23 April 2026 — Makino Milling Machine Co., Ltd. announced that the recommendation was issued by Japan’s Ministry of Finance and the Ministry of Economy, Trade and Industry (METI) under the Foreign Exchange and Foreign Trade Act. MBK is required to decide whether to accept the recommendation by May 1.

Japan Positions Machine Tools as a Strategic Industry

MAKINO is known for its high-precision machine tools, particularly 5-axis machining centers supplied to major Japanese heavy industries and defense-related manufacturers. Based on these factors, the Japanese government determined that the proposed acquisition could raise economic security concerns.

Before MBK entered the deal, Nidec Corporation had previously planned to acquire MAKINO but later withdrew its proposal. MBK subsequently entered negotiations and secured MAKINO’s support for the tender offer.

However, delays in obtaining regulatory approvals in multiple countries pushed back the planned launch of the TOB until late June.

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The MBK–MAKINO Deal Could Reshape the Company’s Growth Strategy 

MBK entered discussions to acquire MAKINO after Nidec Corporation withdrew its own acquisition plan. MAKINO supported MBK’s proposal, and the tender offer was scheduled to proceed. However, delays in obtaining regulatory approvals in multiple countries pushed the launch of the TOB back to late June.

In a statement issued on April 23, MBK said it was “very surprised” by the government’s recommendation and is currently evaluating its next steps, including whether to accept the recommendation.

MAKINO stated that its agreement with MBK remains valid and that the company is considering all available options to enhance corporate value, including strengthening shareholder returns through increased dividends and share buybacks.

If MBK ultimately withdraws from the deal, MAKINO may need to reconsider its future growth strategy, including whether to remain independent or pursue partnerships with alternative investors or industry players.

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Source: Nikkan Kogyo Shimbun