NSK (TYO:6471) and NTN (TYO:6472) signed a memorandum of understanding to integrate their businesses through a joint holding company planned for October 2027, according to a Tuesday filing on the Tokyo Stock Exchange.
Shares of NTN jumped over 7% in morning trade Wednesday, while those of NSK plunged more than 11%.
The companies said the integration is aimed at strengthening long-term competitiveness amid slowing demand in China and Europe, uncertainty tied to US tariff policies, and rising pressure on the manufacturing sector.
Under the plan, NSK and NTN will become wholly owned units of the holding company through a joint share transfer, subject to shareholder and regulatory approval. The companies expect to sign a definitive agreement within about six months, with shareholder votes scheduled for June 2027.
NSK and NTN said they aim to improve efficiency by combining management resources, strengthening supply chains, and expanding higher-value businesses such as maintenance and product lifecycle management.
The companies also said the integration would support the development of new products and technologies by combining their engineering capabilities and operational expertise.