Nidec shares fall 7% to lowest level since July 2016 amid delisting risk

Nidec: Nidec Corporation is a Japanese manufacturer specializing in precision electric motors and related components for automotive, industrial, and consumer applications. The company is currently embroiled in an accounting scandal involving irregularities and material weaknesses in internal controls, which has triggered massive impairment charges, repeated auditor disclaimers, and ongoing delisting risks from the Tokyo Stock Exchange. Under new leadership, Nidec is pursuing restructuring including sales of non-core units and a shift toward higher-growth areas like AI and energy systems while facing pressure from activist investors to consider privatization options. Accounting Scandal: Nidec continues to address fallout from an accounting scandal that has involved widespread irregularities, ineffective internal controls, and repeated refusals by its auditor to issue opinions on financial statements. Regulatory Scrutiny: The Tokyo Stock Exchange maintains Nidec on special alert status due to governance concerns, requiring the company to demonstrate improvements in its internal management systems by a late October deadline to avoid potential delisting. Activist Investor Pressure: Activist investors have urged Nidec's board to explore privatization or sale options to protect stakeholders amid ongoing concerns over management recovery and delisting risks.