According to a report from Reuters, Canon was hit with a €28 million (US$31.8 million) fine on Thursday, June 27, for jumping the gun in its acquisition of Toshiba’s medical unit three years ago before securing EU antitrust clearance.
The European Commission stated Canon had breached EU merger rules by using a so-called “warehousing” two-step transaction structure involving an interim buyer to purchase the company prior to obtaining the relevant approvals.
The unorthodox method allowed Toshiba, which was struggling for cash after an accounting scandal, to book proceeds in time for the financial year-end in March.
“Our merger assessment and decision-making depends on the Commission being sure that companies are not jumping the gun and implementing mergers without our approval,” European Competition Commissioner Margrethe Vestager said in a statement.
Full Content: Reuters