NSK and NTN said on 12 May that they had signed a memorandum of understanding to combine their businesses under a joint holding company created through a share transfer, in a merger of two of Japan's main bearing manufacturers.
Why NSK Ltd. and NTN Corporation (joint holding company) is buying NTN Corporation
The companies said rapid changes in their markets, including slower growth in China, weak conditions in European manufacturing and the impact of US tariff policies, made integration necessary for long-term profitable growth. They aim for growth driven by a sense of urgency rather than mere scale, to preserve Japanese technology and manufacturing, and to strengthen international competitiveness. NSK president Akitoshi Ichii said the move was needed to maintain their competitive power, according to Jiji Press.
Deal terms and financing
The integration is to proceed in a spirit of equality, with the share transfer ratio to be determined in a definitive agreement based on due diligence, third-party valuations and market prices. NSK will appoint the president of the holding company, Jiji Press reported. NSK reported net sales of ¥911.6bn for the year to March 2026 and NTN ¥825.6bn for the year to March 2025.
Regulatory approvals and timing
The definitive agreement is scheduled within about six months of the memorandum, followed by shareholder approval at both companies' annual meetings in June 2027 and the establishment and listing of the holding company in October 2027. The timetable depends on US securities law requirements and domestic and foreign competition reviews.
Market context
NSK was founded in 1916 and NTN in 1918, and both make bearings, automotive components and precision equipment. Their main competitors are European bearing groups.
