Nidec, already mired in a deepening accounting crisis, now faces the risk of being delisted after the Tokyo Stock Exchange said Monday it will apply special oversight to the company.
The manufacturer of precision motors has been designated as a "security on special alert," starting Tuesday, the TSE said in a statement. That kicks off a potentially years-long process in which Nidec must show an internal management system that’s adequately developed and implemented. If the exchange sees no improvement after follow-up periods, the firm may be delisted.
In a separate statement, Nikkei said its shares will be removed from its blue-chip Nikkei 225 Stock Average due to the designation. It will be replaced by electronics maker Ibiden.
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