Is Canon Playing the Name Game with Toshiba Acquisition?

Canon changed the name of Toshiba Medical Systems to Canon Medical Systems. Could the new identity help the company move past the controversy that surrounded the deal?

There are lots of reasons a large corporation may decide to rename part of its business, especially in the case of an acquisition. So Canon's announcement Thursday that it is changing the name of Toshiba Medical Systems to Canon Medical Systems is not all that unusual.

The Tokyo-based company said the name change will bring the medical imaging business "in line with the rest of the company."

What makes this particular situation stand out, however, is the timing, because it comes more than a full year after Canon acquired Toshiba's medical business in 2016 for $6 billion.

Canon attributed the delay to the process the company had to go through to get regulatory approval to integrate the acquired business with the Canon Group. Canon got into some hot water with Japanese regulators in 2016 for reportedly paying Toshiba the agreed-upon sale price before regulatory approval was granted.

Last year the company reported that European regulators also threatened to fine Canon up to 10% of annual revenue for pulling the trigger on the acquisition too soon. 

The European Union Commission said it had reached a preliminary view that Canon breached rules by using a so-called warehousing two-step transaction structure involving an interim buyer to buy the company prior to obtaining relevant approvals.

Filed Under
500 characters remaining