Nidec CEO Kishida plans to resume M&A after resolving governance scandals

Nidec Corp. will return to mergers and acquisitions once it gets past a series of scandals that have shaken the Japanese motor maker’s governance and reputation, Chief Executive Officer Mitsuya Kishida said in remarks reported by Bloomberg on Friday. Kishida said the company is focused first on restoring trust with customers and cleaning up internal problems, but suggested that dealmaking could resume after those issues are addressed.

The comments point to a company trying to stabilize itself after months of turmoil involving accounting questions, succession disputes and quality-control concerns. Nidec, long known as one of Japan’s most aggressive corporate buyers, has spent recent months under heavy scrutiny, and Kishida’s message was that expansion through acquisitions is still part of the company’s long-term playbook. For now, however, he said the priority is to repair the damage and demonstrate that the business can operate with stronger discipline.

Kishida also said demand tied to data centers is helping cushion the impact of the scandals on recent performance. That business has become increasingly important as global spending on artificial intelligence infrastructure and cloud computing drives demand for the motors and components used in cooling and related systems. In an interview with Bloomberg, he said the company’s first task is to “regain trust” with customers, underscoring that commercial recovery depends as much on credibility as on sales.

The company’s troubles have been serious. Nidec has faced a prolonged accounting scandal that prompted leadership changes and raised questions about internal controls across multiple subsidiaries. Earlier reports said investigators found widespread improper accounting, while the Tokyo Stock Exchange placed the company on a special alert list as it worked to improve governance. Those developments have added pressure on Kishida, who has had to balance crisis management with efforts to keep the business growing.

Nidec’s renewed emphasis on repair comes as its core markets remain attractive. Data-center demand has given the company a source of resilience at a time when other parts of the business are under strain, and that may buy management time to address lingering issues. But the company’s ability to re-enter the acquisition market will likely depend on how quickly it can convince investors, regulators and customers that its controls are reliable again.

For now, Kishida’s remarks signal a cautious reset rather than an immediate shift. Nidec is still working through the fallout from its scandals, but the CEO’s comments make clear that once the company believes the worst is behind it, dealmaking remains on the table.