Nidec’s prolonged accounting crisis, a potential new ¥1 trillion ($6.4 billion) impairment charge and the likely ouster of its chief executive have triggered a stock rout, making the once-formidable blue chip a much-weakened takeover target after years of managerial turmoil. A write-down of that scale, as reported by a Japanese business magazine this week, would mark one of the the biggest-ever impairments by a Japanese company. At the same time, an exit by CEO Mitsuya Kishida, 66, after less than three years on the job would leave the world’s largest maker of precision motors without any obvious leader at a critical juncture.
With shares falling 20% this week and now worth about one-third of their 2021 peak, the ongoing chaos increases the odds of Nidec becoming a buyout or breakup candidate, according to industry analysts. Activist investor Oasis Management already owns 8% of the manufacturer and has pushed for stronger governance and measures to unlock value.
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