Nidec’s prolonged accounting crisis, a potential new ?1 trillion ($6.4 billion) impairment charge and the replacement of its CEO have triggered a stock rout, making the once-formidable blue chip a much-weakened takeover target after years of turmoil.
A writedown of that scale, as reported by a local magazine this week, would mark one of the biggest such charges by a Japanese company. The company announced Tuesday the departure of CEO Mitsuya Kishida, 66, after less than three years on the job. He’ll be replaced by Chief Technology Officer Michio Kaida, 70, effective immediately.
With shares falling 20% this week and now worth about one-third of their 2021 peak, the ongoing chaos increases the odds of Nidec becoming a buyout or breakup candidate. Activist investor Oasis Management already owns 8% of the manufacturer, and has pushed for stronger governance and measures to unlock value. The crisis puts Nidec at risk of joining Olympus, Nissan and Toshiba in the ranks of Japanese companies that fell from grace due to management upheaval and weak corporate governance.
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