(Photo: DMG Mori Seiki)

The major Japanese machine tool maker, DMG Mori Seiki Co. Ltd. plans to carryout a bid to acquire its German partner, DMG Mori Seiki AG.

Both the Japanese and German partners entered into a Cooperation Agreement on January 21, which outlines continued operation of significant production sites, the maintenance of jobs and the future corporate governance and aims at a further intensification of the successful cooperation between the companies.

However, the Japanese partner hope to increase its holding to more than 50 per cent of DMG Mori Seiki AG, which was formally known as Gildemeister. Currently, the Japanese company owns 24.3 per cent of its German partner. Its target number of shares was established at 50 per cent plus one, although there is no maximum set.

The Japanese partner offered €27.50 for the shares it hopes to acquire, which is a markup of 7.5 per cent of current share prices. The takeover bid is set for the upcoming weeks.

In March 2009, Guildemeister AG entered into a strategic partnership with Mori Seiki of Japan, yielding the current two DMG Mori Seiki organizations of Germany and Japan.  The two companies incorporated their names under DMG Mori Seiki in 2013. It was reported that  and the Japanese partner planned to integrate their management by around 2020, although this was never /confirm/ied.

For more information, visit www.dmgmoriseiki.com.