Wed, Oct 24, 2018 - Page 10 News List

Nidec, Schaeffler vie for Taiwan’s PMI

BINDING OFFERS:The potential sale, which has also attracted buyout firms, could value the firm at more than US$1 billion, people with knowledge of the matter said

Bloomberg

Nidec Corp, a Japanese supplier to Apple Inc, and Germany’s Schaeffler AG are among bidders competing for Taiwanese components maker Precision Motion Industries Inc (PMI, 銀泰科技), people familiar with the matter said.

Nidec and Schaeffler are conducting due diligence as they weigh binding offers for the closely held company, the people said, asking not to be identified because the matter is private.

The potential sale, which has also attracted buyout firms, could value the Taichung-based firm at more than US$1 billion, the people said.

A deal for PMI, whose components are used in semiconductor manufacturing, could be reached in the next few weeks, they said.

Any sale would add to the US$4.7 billion of announced acquisitions of Taiwanese companies this year, compared with US$5.7 billion during the same period last year, according to data compiled by Bloomberg.

No final decisions have been made and the companies could still decide against pursuing an agreement, the people said.

Representatives for Schaeffler and Nidec declined to comment. PMI declined to comment.

PMI is working with a financial adviser as it pursues a deal, people familiar with the matter said last month.

Founded in 1990, the company makes ball screws and other components used in precision machinery for plastics injection, semiconductor manufacturing and metal shaping, its Web site shows.

Schaeffler’s ball bearings and other technologies are used in combustion engines and transmissions.

The Herzogenaurach-based company has been investing in new technologies as the global automotive industry shifts toward electric vehicles, which do not require many of the products it sells to automakers.

Nidec this year agreed to buy refrigeration compressor maker Embraco from Whirlpool Corp for US$1.08 billion.

The Kyoto-based electric-motor maker supplies parts to companies including Apple and Seagate Technology PLC.

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