Canon to Purchase Toshiba Medical Unit in Deal Worth Nearly USD 6 Billion

Toshiba has sold all its shares in Toshiba Medical Systems for USD 5.9 billion (JPY 665.5 billion) to Canon, as part of a major restructuring plan.

The two companies plan to complete the transaction in FY2016, if the deal closes on time and pending clearance of the deal by competition regulatory authorities.

Canon (Tokyo, Japan) won exclusive negotiating rights to purchase the Toshiba medical unit which manufactures modalities such as Magnetic Resonance Imaging (MRI) and Computed Tomography (CT) scanners, after a highly-competitive auction. Canon manufacturers X-ray systems, and will now expand into the high-margin medical device market.

The sale follows a large accounting scandal that has affected Toshiba Medical Systems Corporation (Otawara, Tochigi-ken, Japan). Toshiba revealed details of the scandal in 2015, as part of which Toshiba had overstated profits from around 2009. In a related move Toshiba announced job cuts for more than 10,000 of its staff and also plans to sell other parts of the company. The company is expected to make a loss of about USD 6.0 billion for the year until March 2016, and may receive a JPY 7.37 billion fine from the Japanese Securities and Exchange Surveillance Commission.

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