MBK Partners' attempt to acquire the Japanese machine tool company Makino Milling Machine Company (Makino) has put DN Group in an uncomfortable position. DN Group entered the machine tool industry by acquiring DN Solutions from MBK, but if MBK acquires Makino, it will face a competitor that is well-informed about internal circumstances.
MBK Partners acquired the machine tool division from Doosan Infracore for 1.13 trillion won in 2016 and sold it to DN Group for 2.4 trillion won in 2021. MBK Partners raised DN Solutions' market share in the machine tool sector from 6th to 3rd place and received praise for successfully recouping their investment.
MBK Partners is pursuing the acquisition of Makino through a public tender offer (TOB). MBK Partners has obtained the preferred negotiation rights for purchasing Makino shares and is known to be leveraging its experience from operating DN Solutions during this process.
From DN Group's perspective, it is an uncomfortable situation for MBK Partners, which managed Doosan Machine Tools for about six years, to re-enter the machine tool market. This discomfort arises because MBK Partners has a significant amount of information about DN Solutions' transaction methods, technologies, and other company-related details, and there are many similarities between DN Solutions and Makino.
MBK Partners acquired DN Solutions in 2016 and grew it from a revenue of 628.7 billion won and an operating loss of 2.5 billion won to a revenue of 2.1763 trillion won and an operating profit of 31 billion won in 2022. The investments in research and development and the establishment of overseas sales networks, including in Europe and North America, were effective.
DN Solutions and Makino earn most of their revenue overseas. Makino, which manufactures and sells 5-axis machining centers and high-precision machining centers, recorded a revenue of 234.2 billion yen (about 2.2082 trillion won) in the fiscal year 2025 (from April 2024 to March 2025), of which approximately 80% is known to come from overseas business sector revenue. DN Solutions also primarily focuses on 5-axis machining centers and machining centers, with 80% of its sales from overseas out of last year's revenue of 2.112 trillion won.
After acquiring DN Solutions, MBK Partners increased its revenue share from the European region from 14% to 27%. Currently, Makino's key markets are China, India, and the United States. The industry expects that if MBK Partners acquires Makino, it will increase its market share in Europe, leading to a competitive scenario between Makino and DN Solutions in the European market.
An industry insider noted, "Even if there are no legal issues with MBK's acquisition of Makino, it is similar to a producer selling an entertainment agency and then creating a similar idol."