Business / Corporate

EU fines Canon €28 million for regulatory oversights in 2016 acquisition of Toshiba subsidiary

JIJI

The European Commission said Thursday it had fined Japanese imaging product-maker Canon Inc. €28 million (about ¥3.4 billion) over its 2016 acquisition of a Toshiba Corp. subsidiary.

The commission, the executive branch of the European Union, said Canon partially implemented the acquisition of Toshiba Medical Systems Corp. before notifying the commission about the deal and obtaining its approval.

The penalty, however, does not affect the commission’s approval of the acquisition.

Canon rejected the fines, and said it will bring the issue to the EU’s Court of Justice.

The firm carried out the acquisition in two stages to let Toshiba, then struggling with huge losses, book a profit from the sale of the subsidiary early.

Companies “are obliged to notify and wait for our approval before a merger plan can go ahead,” said a statement by Commissioner Margrethe Vestager, who is in charge of competition policy.

Japan’s Fair Trade Commission also issued a warning to Canon over the acquisition.