Makino Milling Machine's (TYO:6135) board rejected a takeover proposal from private equity firm Nippon Sangyo Suishin Kiko, citing regulatory and financing concerns, according to a Friday filing with the Tokyo Stock Exchange.
The board said the proposed acquisition was unlikely to receive approval under Japan's Foreign Exchange and Foreign Trade Act, noting that authorities previously rejected a similar transaction.
It also pointed to the proposal's reliance on funding from foreign investors, including government-linked entities.
Makino further questioned the deal's feasibility because it depended on commitments from external investors. The board said the proposed growth strategy offered no meaningful advantage over the company's existing business plan and warned the transaction could weaken its financial position.
Separately, the company announced a 6 billion yen share buyback to boost shareholder returns.