March 17, 2016
In a press release, Canon stated that it plans to make TMSC “a subsidiary”, having “concluded a share transfer agreement with Toshiba”, though the acquisition is dependent on “the clearance of necessary competition regulatory authorities”. The OEM also adds that as part of a five-year plan launched this year, it aims to “embrace the challenge of new growth through a grand strategic transformation”, including through “reinforcing and expanding new businesses”.
Canon called TMSC “one of the leading global companies in the medical equipment industry”, and noted that it will “be welcome into the Canon Group”, with the aim of “maximising the combination of both companies’ management resources”. Benefits earmarked from the acquisition include “accelerated entry into new fields”; “further improvements in quality through shared production technology”; and “expanded business domains through enhanced development capabilities”.
Last week, it was reported that Canon had been granted “exclusive negotiating rights” for TMSC, after an earlier reveal that Toshiba was to sell the unit, with interested parties including Canon as well as Fujifilm and Konica Minolta. The sale of the unit is aimed at “shoring up Toshiba’s capital” after it was found to have “inflated profits […] with bosses’ knowledge” by around £780 million ($1.2 billion/€1.1 billion) in July 2015.
This led to former CEO Hisao Tanaka’s resignation after admitting he was aware of the scandal, facing an action for compensation of ¥300 million ($2.4 million/€2.2 million), along with two former CFOs and two other ex-CEOs. The profit scandal cost the OEM around ¥90 billion ($738 million/€680 million) in the first half of the financial year, and lies behind the restructuring plans.
The Recycler also reported in December 2015 on the speculation that Toshiba Tec, the OEM’s office equipment subsidiary, might be sold off as part of a “major restructuring”, with Japan Times claiming at the time that the restructuring would include “thousands of job cuts” worldwide as the OEM looks at reorganising the “loss-making” TV, computer and white goods businesses.
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