Nidec to Procure M&A Capital
KYOTO, Japan, Nov. 28, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) (the "Company") today announced that it plans to receive funds to accommodate part of the total amount of its M&A cost via The Bank of Tokyo- Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, and The Norinchukin Bank by utilizing the credit lines to these Japanese financial institutions extended by the Japan Bank for International Cooperation (JBIC).
The Company has been trying to strengthen the Nidec Group's commercial motor business as one of its main businesses, part of such efforts being the September 2010 acquisition of Nidec Motor Corporation (formerly, Motors & Controls Business of Emerson Electric Co. (US), "NMC").
To further strengthen the Group's commercial motor business, on November 01, 2012, the Company has acquired, and started operating as its new subsidiary, Kinetek Group Inc. ("Kinetek"), a company that occupies a leading position in the U.S. and other markets for commercial motors used in such end-products as elevators/escalators, material handling vehicles, etc.
The Company expects that the above credit lines will suppress its cost to procure long-term foreign currency-based funds for its overseas M&A activities, and that the procurement of foreign currency-denominated long-term liabilities will contribute to reducing currency exchange-associated risks.
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CONTACT: For inquiries, please contact: Mr. Keiji Hirai General Manager, Finance Department Nidec Corporation 338 Tonoshiro-cho, Kuze, Miami-ku, Kyoto 601-8205 Tel: +81-75-935-6230