Canon Stock Price Drops to More Than Two-Month Low After EU Threatens Huge Fine

[Canon Rumors]

<em>Canon fined for not including 4K on the EOS 6D Mark II? </sarcasm></em></p>
<p><strong>From Reuters:</strong></p>
<blockquote><p>Canon Inc’s stock fell to its lowest levels in more than two months on Friday after EU regulators said they may fine it up to 10 percent of annual revenue for jumping the gun in its acquisition of Toshiba Corp’s medical unit.</p>
<p>The EU 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.</p>

<p>Ten percent of Canon’s annual revenue would be roughly equivalent to $2.9 billion.</p>
<p>The $6 billion deal, completed late last year, raised eyebrows at the time due to the unorthodox method which allowed Toshiba, which was struggling for cash after an accounting scandal, to book proceeds in time for the financial year-end in March.</p>
<p>Rival bidder Fujifilm Holdings Corp  had criticized it as a “mockery of the law”.  <a href="http://www.reuters.com/article/us-eu-antitrust-canon-idUSKBN19S09J">Read the full story</a></p></blockquote>
<span id="pty_trigger"></span>
<div style="font-size:0px;height:0px;line-height:0px;margin:0;padding:0;clear:both"></div></p>

 

[Khalai]

Wut? I hope this has some legal merit and it's not just another EU Comitee meddling...

 

[Canon Rumors]

Ummm.....where is there any mention of the lack of 4K in this article?

Are you serious?

 

[Mt Spokane Photography]

The Europeans are always trying to levy big fines on foreign companies in order to prop up their currency. Somehow, all European companies never have a issue and are never fined.

 

[IglooEater]

Ummm.....where is there any mention of the lack of 4K in this article?

Are you serious?

oh my.... where's the face palm emoticon when I need it?

 

[magarity]

The Europeans are always trying to levy big fines on foreign companies in order to prop up their currency. Somehow, all European companies never have a issue and are never fined.

This site only reported the Canon part but the same EU announcement did indeed include a fine for Merck. Anyway, I can't help but wonder what's the EU's jurisdiction over a Japanese company buying a subsidiary of another Japanese company.

 

[nightscape123]

The EU has to pay for its Socialism somehow. They've run out of their own money.

Does canon even do $3 billion in business in the EU? Might be better for them to just pull out.

 

[Valvebounce]

Hi Nightscape.
We in the U.S.E. or United States of Europe, (not for much longer here thankfully) resent that comment, well I do anyway!
Seriously though, judging from the bad will generated by Lancia when they pulled out of the UK market in the eighties because their cars dissolved in the first rain shower (no they still haven't been forgiven by many) this would be a very bad move for Canon!

Cheers, Graham.

The EU has to pay for its Socialism somehow. They've run out of their own money.

Does canon even do $3 billion in business in the EU? Might be better for them to just pull out.

 

[Orangutan]

The Europeans are always trying to levy big fines on foreign companies in order to prop up their currency. Somehow, all European companies never have a issue and are never fined.

Like Volkswagen?

Seriously, though, that's a mighty big statement. I'll concede that it could well be true; however, it's equally possible that European companies have developed in the EU regulatory structure, and have a better idea of what will fly and what won't.

 

[KeithBreazeal]

Legally, how are they going to prove they were damaged?

 

[Orangutan]

Ummm.....where is there any mention of the lack of 4K in this article?

Are you serious?

oh my.... where's the face palm emoticon when I need it?

Now where did I leave that bag of context, it was just here a minute ago.

 

[Orangutan]

Legally, how are they going to prove they were damaged?

Regulatory agencies of sovereign entities don't need to do that.

 

[Maiaibing]

Wut? I hope this has some legal merit and it's not just another EU Comitee meddling...

Its called upholding "consumer protection and fair business practices". Canon can go to court if it happens and they think they have a case.

 

[AlanF]

The Europeans are always trying to levy big fines on foreign companies in order to prop up their currency. Somehow, all European companies never have a issue and are never fined.

Come off it - that is complete and utter garbage! European banks have been and are still being fined tens of billions by the US over issues from sub-prime to currency exchange rigging. Have you forgotten how BP was taken to the cleaners for many tens of billions by the Obama administration for the Gulf of Mexico incident, and Obama called it British Petroleum, an obsolete name? And what about VW being fined over the diesel scandal?

 

[LDS]

because their cars dissolved in the first rain shower

Just like the whole British car industry?

 

[LDS]

I can't help but wonder what's the EU's jurisdiction over a Japanese company buying a subsidiary of another Japanese company.

If they have operations in EU they need approval from EU authorities as well, and follow EU rules also. Hitachi and Western Digital had to obey Chinese antitrust ruling for their merger, for the matter. Globalization means also this.

Meanwhile, anyway, EU and Japan struck a commercial deal which will impact car and electronic devices imports from Japan, removing some limitations and fees. Let's see if Canon products here will become cheaper...

 

[Orangutan]

I can't help but wonder what's the EU's jurisdiction over a Japanese company buying a subsidiary of another Japanese company.

Globalization means also this.

One of the important goals of international trade agreements is to regularize these processes. Sounds good in theory, devilishly difficult in practice.

 

[AlanF]

I can't help but wonder what's the EU's jurisdiction over a Japanese company buying a subsidiary of another Japanese company.

Globalization means also this.

One of the important goals of international trade agreements is to regularize these processes. Sounds good in theory, devilishly difficult in practice.

True. The rules are there to protect us all as consumers, from pharmaceuticals to investments. Canon probably doesn't have to pay the fine but if if it doesn't it won't be able to trade in the EU.

 

[zim]

I can't help but wonder what's the EU's jurisdiction over a Japanese company buying a subsidiary of another Japanese company.

Globalization means also this.

One of the important goals of international trade agreements is to regularize these processes. Sounds good in theory, devilishly difficult in practice.

True. The rules are there to protect us all as consumers, from pharmaceuticals to investments. Canon probably doesn't have to pay the fine but if if it doesn't it won't be able to trade in the EU.

Like the whole of Canon inc. ? Their entire portfolio across every business sector? I wonder who that would actually hurt more!

 

[YuengLinger]

Relevant topic, for sure, but how can we avoid politics? What a debacle.