On the 7th, the Tokyo District Prosecutor's Special Investigation Department apprehended a new suspect, Keigo Saito, a 29-year-old man whose residence and occupation are currently unknown, in an ongoing investigation into insider trading linked to Nidec's tender offer (TOB). This arrest expands the investigation that has already implicated others, including Taka Naramoto, a former director at Mita Securities, for their involvement in insider trading activities. Saito is believed to have conspired with Naramoto to purchase approximately 329,100 shares of Makino Milling Machine, worth about 2.35 billion yen, prior to the public announcement of the TOB between Nidec and Makino Milling Machine.

At the time of the trade, Nidec was in negotiations to conclude a contract for a TOB representation service with Mita Securities regarding Makino Milling Machine. The ongoing scrutiny and arrests highlight the heightened concerns regarding insider trading practices in Japan's financial markets, particularly those involving large corporations and their dealings. The allegations against Saito and Naramoto signal a broader intent by regulatory authorities to clamp down on illicit trading activities that compromise market integrity, potentially leading to more stringent regulatory measures in the finance sector.

As the investigation unfolds, the implications for Nidec and its business relationships remain to be seen, particularly in maintaining investor trust and assuring adherence to fair trading practices. Stakeholders are closely monitoring the situation as it poses significant risks for corporate governance and regulatory compliance in Japan's competitive market landscape.