By Kosaku Narioka

Makino Milling Machine shares fell sharply after MBK Partners said the Japanese government asked the Seoul-based private-equity firm not to proceed with its planned acquisition of the machine-tool maker.

Makino shares were recently 9.4% lower at 10,500 yen, equivalent to $65.84, on Thursday in Tokyo after falling as much as 11% earlier.

MBK Partners said Thursday that the Japanese government asked it not to start a tender offer to take Makino private, saying that the information Makino possesses, if combined with other data, could be considered sensitive from a national-security perspective.

The government told MBK that Makino's machine tools are widely used by Japanese makers of defense equipment, the private-equity firm said.

The private-equity firm said it is considering whether to accept the government's recommendation.

MBK said in June that it planned to buy Makino shares for Y11,751 apiece to take the company private.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 23, 2026 02:02 ET (06:02 GMT)

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