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


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

Business Affairs Homepage

Shanghai Pharma to acquire Cardinal Health China business for $1.2 billion Deal includes pharma and medical products distribution business

ACR chair urges congress to fund low-dose radiation research Last BEIR report on effects of low-dose exposure issued over 10 years ago

GE to whittle down, focus more on health care CEO Flannery also plans to prioritize aviation and power businesses

First Lady of Mozambique visits KPI Healthcare headquarters Finalizing medical equipment contract to reduce mortality in African nation

Konica Minolta signs group purchasing agreement with Premier for the Exa platform The three-year deal brings special pricing to 3,900 hospitals

Siemens Healthineers IPO: New details from CEO, Joe Kaeser Internal preparations expected to conclude by March

Mike Kaufmann Cardinal Health names new CEO

Why employers with dispersed workforces should care about physician quality Lower quality treatment yields higher systemwide expenses

Imaging departments stay afloat during hurricanes Advice from the front lines of Harvey and Irma

Stryker partners with Philips to offer new and reprocessed ECG leads for one low price May divert millions of pounds of waste from landfills per year

Commission alleges Canon's Toshiba Medical acquisition breached EU rules

by Thomas Dworetzky , Contributing Reporter
Canon stock plunged Friday to a two-month low after EU merger commissioners sent it a Statement of Objection over the two-step deal it used to acquire Toshiba Medical Systems in 2016.

While the approval of the merger will remain “effective,” the examination of alleged violations of procedural rules could end up costing Canon as much as $2.9 billion in fines, according to a European Commission statement.

Story Continues Below Advertisement

Streamline Your Radiology Workflow with RamSoft's PowerServer RIS/PACS

The PowerServer RIS/PACS is a single database application, essential to reducing redundant work, limiting manual data entry, and increasing consistency throughout healthcare practices. Click to learn how it will help you improve patient care and more.



The deal had already raised objections, including in China and Japan.

"We need companies to work with us to ensure fast and predictable merger control, to the benefit of both companies and consumers. But we can only do our job well if we can rely on cooperation from the companies concerned – they must obtain our approval before they implement their transactions, and the information they supply us must be correct and complete," stated Commissioner Margrethe Vestager, in charge of competition policy.

The Commission has told Canon that its “preliminary conclusion” is that the company “breached the EU Merger Regulation by implementing its acquisition of Toshiba Medical Systems Corporation before both notifying to, and obtaining approval by, the Commission.”

The Commission was notified on August 12, 2016 and cleared the deal on September 19, 2016.

The organization said that in its preliminary view, the deal used a “so-called 'warehousing' two-step transaction structure, involving an interim buyer, which essentially allowed it to acquire Toshiba Medical Systems prior to obtaining the relevant merger approvals.”

If the initial viewpoint becomes the group's final conclusion, “it could impose a fine of up to 10 percent of Canon's annual worldwide turnover,” according to the statement.

The company responded only that it had received the document from the Commission, explaining in a statement that, “Canon, upon careful examination of the Statement of Objections, will respond in due course. Additionally, Canon cannot provide any further comment relating to this matter until the European Commission reaches its final decision.”

This possible penalty is not a toothless threat. In May, the Commission slapped Facebook with a 110 million euro fine for “providing incorrect or misleading information” over its deal to buy WhatsApp.

The approach to the Toshiba Medical buy has raised objections internationally.

In January, China's Ministry of Commerce reportedly slapped a 300,000 yuan ($43,000) antitrust fine on the deal.
  Pages: 1 - 2 >>

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