Printer maker Canon Inc. said Wednesday it will merge subsidiaries Canon Aptex Inc. and Copyer Co. to create a new company specializing in office printers.

The company, to be created Jan. 1, will develop, manufacture and sell multifunctional ink jet printers for business use. It will be based in Mitsukaido, Ibaraki Prefecture.

The stock exchange ratio to carry out the merger is one Copyer share for 0.41 Canon Aptex share. The parent company will own 57.8 percent of the new firm.

The new company is expected to earn 170 billion yen in sales, 5.6 billion yen in pretax profits and 3.1 billion yen in net profits in 2003.

Canon President Fujio Mitarai said the deal will help his company increase consolidated management efficiency and raise group value as the subsidiaries’ operational bases will be streamlined.

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