MBK Partners, the largest private equity firm in Northeast Asia, is set to acquire Japan-based machine tool manufacturer Makino Milling Machine in a deal expected to exceed 2 trillion won ($1.75 billion).

According to investment banking sources on Wednesday, MBK secured exclusive negotiation rights to purchase Makino to prevail over rival bidder Carlyle Group. The deal, considered a major merger and acquisition transaction, is likely to proceed through a tender offer.

The proposed acquisition price stands at 11,000 yen per share, or around 105,000 won. Makino was previously the target of a hostile takeover attempt by Japanese motor manufacturer Nidec, which had launched a tender offer in April 2025 at the same per-share price. The total deal value would have exceeded 250 billion yen had Nidec acquired all outstanding shares, but Nidec withdrew the offer earlier in May 2025 amid resistance from Makino.

The exact scale of MBK’s planned tender offer has not been disclosed. Headquartered in Tokyo’s Meguro district, Makino is a globally recognized precision machine tool manufacturer founded in 1937 by Tsunezo Makino.

MBK plans to finance the acquisition via its sixth blind fund, established in 2024. The fund, totaling around 10 trillion won, is backed by global institutional investors including the Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan (OTPP), and Singapore’s Temasek, along with South Korea’s National Pension Service.

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