Canon will take over the development of Toshiba medical equipment business

Canon will take over the development of Toshiba medical equipment business

Smart phone camera functions are becoming more and more powerful, making digital camera companies difficult to live in, and are forced to consider the future development space. According to Reuters, Canon, the Japanese digital camera giant that has been looking for other high-margin businesses, is expected to invest more than $6 billion to acquire Toshiba’s medical imaging equipment business and continue to expand its medical equipment industry.

Canon will take over the development of Toshiba medical equipment business

According to media reports such as the Nikkei News, Canon, Fuji and Konica Minolta had bid for the Toshiba medical equipment business together, and Canon has already taken the lead in the bidding and obtained exclusive rights to negotiate. If there is no accident, Canon will buy Toshiba medical imaging equipment business.

Due to the accounting fraud scandal and major losses, Toshiba decided to undertake a major business transformation, which will transfer the medical equipment business. The medical device business and digital cameras have the same imaging technology, and Japanese digital camera companies are trying to transform due to poor development prospects, so Toshiba's bidding has become very popular.

According to reports, Toshiba is currently convening a second round of bidding, and Canon has achieved a leading position. In addition to Canon's offer of more than $6.2 billion, the acquisition of Canon and Toshiba's medical device business is currently not easily overlapped, so the acquisition is more likely to obtain approval from the Japanese government's antitrust authorities.

As for the specific quotation, neither Canon nor Toshiba disclosed or commented.

In the past few years, the camera and video recording functions of smart phones have become more and more powerful. Digital cameras have become a sunset market. The low-cost card cameras are basically replaced by mobile phones. Digital SLR cameras still have some photography hobbies. The niche market.

Canon hopes to add more high-margin non-camera business, with X-ray machine and eye inspection equipment business, Toshiba's medical imaging equipment business will form a better complement.

However, in the medical imaging equipment business, Germany's Siemens has a dominant advantage, and the transformation of Canon and other companies is not smooth. A Japanese securities analyst said that the offer of more than $6 billion is a bit too high, but in the first year of the acquisition, Canon can make a profit.

The analyst said that Canon's investment of more than 6 billion US dollars to acquire Toshiba medical equipment assets is more sensible than the acquisition of Sharp Corporation by China's Taiwan Hon Hai Group.

Last year, Canon also spent $2.8 billion to acquire Swedish network video surveillance vendor Axis.

An analyst at Macquarie Securities said that if Canon's offer really exceeds $6.2 billion, it would be a good news for Toshiba. He thought that Toshiba could only sell about $3.5 billion. . After the transfer is successful, Toshiba’s asset structure will be more reasonable and stable, and investors and creditors will not have to continue to worry.

Toshiba will face a loss of more than $6 billion during the fiscal year. According to sources, Toshiba is currently seeking a loan of $1.8 billion.

According to reports, in the global CT equipment field, Toshiba is currently ranked second in the world. Toshiba's medical equipment business also includes X-ray machines, MRI and other equipment. In the last fiscal year, this business contributed about 3.5 billion US dollars in revenue.

In addition to digital cameras, the entire consumer electronics industry in Japan is undergoing transformation. On the one hand, the rise of smartphones and mobile software has replaced many traditional consumer electronics devices. In addition, the rapid development of Chinese companies in the field of home appliances has also allowed Japan to It is difficult for companies to maintain a competitive advantage based solely on brands.

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