Although the structure of the deal was unorthodox, according to Toshiba, it had consulted legal experts who approved the deal from a legal perspective.
According to a source with direct knowledge of the matter at hand, Japan’s anti-monopoly regulator is investigating Canon Inc over a possible breach of the country’s disclosure norms when Canon acquired the medical arm of Toshiba Corp.
Earlier in March this year, Canon had agreed to acquire Toshiba Medical for $6.5 billion, (665.5 billion yen).
When asked to respond to requests for comments, Canon declined comment.
The source preferred the cover of anonymity since he was not authorized to speak to the media.
Toshiba in a hurry to close the deal and book the cash before the closing of the financial year structured the sale of its medical business in an unorthodox way to Canon and went ahead with the deal before it was approved by regulators.
Although many accounting experts and antitrust regulators have flagged the deal as questionable, they had acknowledged that it was not in violation of any rules and regulation.
As per Toshiba’s spokesman, the company had consulted experts on the deal and the sale was found fit from a legal perspective.