-- Makino Milling Machine (TYO:6135) said MM Holdings will not proceed with a planned tender offer to acquire its shares after accepting a government recommendation to halt the deal, according to a delayed Friday filing on the Tokyo Stock Exchange.
MM Holdings said it accepted a recommendation from Japan's finance and industry ministries under the Foreign Exchange and Foreign Trade Act and terminated its tender offer agreement with Makino, effective April 30.
The authorities determined the proposed acquisition raised national security concerns, citing Makino's production of high-performance machine tools used by defense manufacturers and its possession of related technologies and data.
MM Holdings said it had engaged with regulators for about 10 months and proposed mitigation measures, but ultimately decided not to proceed.