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Toshiba to sell medical unit to Canon for $6.1 billion

Staff writer |
Toshiba agreed to sell its medical-device unit to Canon for ¥ 688 billion ($6.1 billion), the two companies said.

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Canon has already paid ¥ 665.5 billion to Toshiba in cash to acquire Toshiba Medical Systems Corp., and the remaining ¥ 22.5 billion will be paid to Toshiba from the medical unit later, by which time the unit will have become a member of Canon group.

A Toshiba spokesman said the Japan-based medical unit borrowed the smaller piece from Toshiba to acquire a medical unit division in the U.S., which was owned by Toshiba's U.S.-based holdings company.

The medical unit is no longer a subsidiary of the electronics conglomerate, Toshiba said. Canon plans to formally move the unit under its corporate umbrella once antitrust checks by authorities in related countries are completed.

Meanwhile, the medical unit is being held by a third-party company called MS Holdings, Toshiba said.

Toshiba's medical unit makes large, expensive medical machines such as X-ray systems, and is one of the major players in the global market for such equipment.

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