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Japan: Toshiba gets $5.9 billion deal to sell medical unit to Canon

By  |  March 17, 2016

Canon agreed to buy Toshiba medical equipment unit for 665.5 billion yen as the world’s biggest maker of cameras seeks new growth.

The deal will be funded by existing cash and borrowings, Tokyo-based Canon said in a statement Thursday. The agreement comes a day after unsuccessful bidder Fujifilm Holdings questioned Toshiba about the sale.

Toshiba, which makes everything from nuclear power equipment to laptop computers, flash memory chips and home appliances, is seeking to revive profits by narrowing the scope of its business lines. An accounting scandal has left the Japanese conglomerate in tatters, facing record losses, job cuts and potential spinoffs.

Canon is buying a business that makes diagnostic imaging systems such as MRI, X-ray and ultrasound equipment. It would also take the company into competition with General Electric Co., Royal Philips NV and Siemens AG for MRI machines that typically cost more than $100,000 each.

Full content: The Wall Street Journal

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