EU: Regulator raises concerns over Canon acquisition

A European regulator has informed Japan-based Canon that the company may have breached European Union merger regulations with its US$5.9 billion acquisition of Toshiba Medical Systems.

The European Commission said it reached a “preliminary conclusion” that Canon, with US operations based in Melville, may have violated rules by implementing the merger before the commission approved it.

Shares of Canon stock fell a little less than dollar and more than 2% Friday to close just above US$32, in the middle of its 52-week range between roughly US$27 and nearly US$36.

The commission issued a press release regarding the concerns as part of a broader announcement regarding potential problems with acquisitions by General Electric, Merck and Sigma-Aldrich.

The commission said it was notified of Canon’s transaction on August 12, 2016 and cleared it on Sept. 19, 2016.

It also indicated that Canon may have taken some actions before the approval, violating its regulations.

“We need companies to work with us to ensure fast and predictable merger control, to the benefit of both companies and consumers,” Commissioner Margrethe Vestager, in charge of competition policy, said in a written statement. “They must obtain our approval before they implement their transactions and the information they supply us must be correct and complete.”

Full Content: Japan Times

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