DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story

starstarstarstarstar (2)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

Business Affairs Homepage

Survey finds medical devices not meeting provider expectations A call for higher-quality clinical evidence, flexible contract options and better customer service

European Society of Radiology calls for diagnostics to be better represented in value-based care Diagnosis 'is the basis for any treatment decision'

Canon elaborates on financial goals with Toshiba Medical in the fold 'Launching into the global health market ... in one fell swoop'

Former Cleveland Clinic Innovations director pleads guilty to fraud Scheme cost the institution over $2.7 million

NuVasive files lawsuit against former vice chairman Alleges breach of fiduciary duties and violation of contractual obligations

Blue Earth Diagnostics inks Axumin deal with Seibersdorf Laboratories Manufacturing and distribution in certain European countries

Philips to halt production of external defibrillators in two U.S. facilities OEM looks ahead, calling consent decree 'consequence of past sins'

2017 AARC Congress: Focus on COPD For four days in Indianapolis, patients took center stage

Amazon may decide to sell prescription drugs online by Thanksgiving Supply chain and regulatory hurdles could make it more trouble than it's worth

Lynn O'Connor Vos Muscular Dystrophy Association appoints CEO

Chinese government fines Canon over Toshiba Medical deal

by Thomas Dworetzky , Contributing Reporter
Canon isn't done paying for its $6 billion Toshiba Medical acquisition – China's Ministry of Commerce (MOFCOM) has reportedly slapped a 300,000 yuan ($43,000) antitrust fine on the deal.

The punitive measure is “for allegedly violating antitrust regulations with its acquisition of Toshiba Medical Systems Corporation,” according to China News.

Story Continues Below Advertisement

EXPERIENCE THE DIFFERENCE

NEW CXDI-710C and CXDI-810C Wireless Digital Radiography Systems. NEW CXDI Control Software NE Version 2.16 for Windows® 7 and 10. Click for more information>>>



The combined companies had revenues big enough to cross the threshold requiring a filing but they "did not declare in line with relative regulations" and the deal "did not have an outcome of precluding and restricting competition," according to MOFCOM.

Canon has 60 days to appeal the fine, if it chooses to fight. It also has six months to file for administrative action at the Beijing Second Intermediate People's Court, according to the news agency.

The massive Canon acquisition of Toshiba Medical Systems from its troubled former parent company closed in December.

It caused, if not an uproar in Japan, at least a serious stir among regulators and jilted suitors over the questionable structure of the transaction.

Toshiba used a method to dodge potential legal entanglements in which it sold Canon an entity known as "MS Holding", a "special-purpose vehicle with but $300 in capital" formed solely to do this deal. The ploy took voting control from Toshiba Medical and gave it to MS Holding. This vehicle had only three shareholders — the former head of trading house Sumitomo Corporation, a lawyer, and an accountant. Each owned one-third of the entity.

The medical business went to Canon for over $6 billion and the deal got a regulatory nod of approval in May, but also earned a stiff warning.

“We decided to make an announcement about the warning to let everyone know that it is not acceptable, so the same method won’t be used in the future,” Takeshi Shinagawa, director of the Fair Trade Commission's (FTC) mergers-and-acquisitions division, stressed at a news conference.

He warned that the novel maneuver, which made use of warrants, was possibly in violation of the law – despite the fact that no rule was broken explicitly.

The unit was sold to help offset damages from Toshiba's $1.3 billion accounting scandal involving overstated profits and false bookkeeping going back as far as 2009.

Complaints poured in from other jilted Toshiba suitors. One, losing bidder Fujifilm Holdings, took its outrage public, noting that it "would make a mockery of the law."

The two-stage deal may have let Canon dodge Chinese filing requirements, too, Wei Shilin, a senior partner at Dacheng Law Offices in Beijing, told the Global Times.

"The announcement of this penalty will have a negative impact on the reputation of companies such as Canon in their future business expansion in China," he told the news agency.

Business Affairs Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2017 DOTmed.com, Inc.
ALL RIGHTS RESERVED