Nidec CEO Signals Return to M&A Activity After Scandals
Nidec CEO Mitsuya Kishida signaled that the company will return to dealmaking once it recovers from recent scandals involving accounting, succession, and quality control .
Key Statements:
M&A Strategy: "We can expand our business into territory where we create solutions by managing or combining our various machinery businesses, including motors" .
Two-Way M&A: While there will be some existing operations that Nidec will need to sell, there are also new areas to push into .
Strong Sales: Strong sales of components used in emergency power supplies for data centers are driving optimism. The company is working flat out to meet demand and is moving ahead with plans to build factories in the U.S., China, and India .
Challenges:
Quality Control Issues: Nidec disclosed that changes were made to product materials, processes, and designs without customer approval, many involving parts used in household appliances .
Regaining Trust: "Regaining trust is our top priority," Kishida said .
Delisting Risk: Nidec's stock has been removed from the Nikkei 225 and Topix indexes, and the Tokyo Stock Exchange may delist the company if it cannot show improvement in internal management .
