Nippo, a Japanese trading firm for industrial materials and molded plastic products maker, is in talks with private equity firms for a potential take-private transaction, four sources familiar with the situation said.

The Nagoya-based JPY 26.9bn (USD 175m)-market cap company has already received non-binding bids from private equity firms, three of the sources said.

A local securities company is advising Nippo for this deal, according to one of the sources.

Two of the sources said Nippo is seeking a sponsor that would help the company go private to increase managerial flexibility.

Freesia Macross Corporation, the Japan-listed extruding machinery maker, is Nippo’s largest shareholder with a 19.73% stake, as of 30 September 2025, according to the company’s securities report.

In 2021, Freesia Macross launched a hostile takeover bid of Nippo but later withdrew it after Nagoya District Court refused to grant injunctions to stop Nippo’s defensive measures, according to the company’s website.

Singapore-based activist shareholder Axium Capital has gradually been growing its stake in the company, which stood at 17.66％ as of 26 December 2025. It previously increased its shareholding from 16.09% to 17.23% on 10 September 2025.

Nippo did not return requests for comment.