Nidec to Procure M&A Capital
KYOTO, Japan, July 5, 2012 (GLOBE NEWSWIRE) -- Nidec Corporation (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., Mizuho Corporate Bank, Ltd., and Sumitomo Mitsui Banking Corporation 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 industrial 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 enter businesses that NMC has yet to do so, i.e. large industrial motor, power generator, low and medium voltage drive, industrial system, and automation businesses, the Company acquired Italy's Ansaldo Sistemi Industriali S.p.A., an industrial motor manufacturer with approximately 160 years of history, at the end of May 2012. While having procured its initial acquisition funds via a short-term bridge loan by private banks, the Company will extend the length of the liability by utilizing the credit lines.
Furthermore, 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: Keiji Hirai General Manager Finance Department +81-75-935-6230