The offer is set to begin 11 February, 2015 and run through to 11 March, 2015, according to press reports, with DMG Mori Seiki Co expecting to make an announcement by June.
Since 2009, DMG Mori Seiki Co (previously called Mori Seiki Co) and DMG Mori Seiki AG (previously called Gildemeister AG) have co-operated in sales, service, purchasing, development, design, manufacture and, more recently, financing. The pair have also had a cross-shareholding in each other since 2009.
According to its third quarter report, DMG Mori Seiki AG held 9.6% of DMG Mori Seiki Co's share capital, while DMG Mori Seiki Co now holds 26.50% of DMG Mori Seiki AG's share capital (additionally qualified as having voting rights).
A Bloomberg report of 22 January reported that DMG Mori Seiki Co had offered as much as €1.6 billion to expand its holding in German partner DMG Mori Seiki AG. It further said that the Japanese partner wants to acquire more than 50% of its cooperation partner. DMG Mori Seiki Co is to submit the details of its offer in the form of an offer document to the German Federal Agency for Financial Services Supervision within the next four weeks, the article also added.
A merger of the two companies had been on the cards for 2020.
The Japanese machine tool maker had 2013 financial year sales revenue of ¥160,728,000,000 - £900 million. The German side of the partnership had 2013 sales revenues of €2,054,200,000 - £1.53 billion.
The pair sell through a network of 145 sales and service operations globally, branded Mori Seiki. In the UK, this activity is located in Coventry.
