Canon, Toshiba To Pay $5 Mln For Violating Federal Antitrust Laws In TMSC Deal

(RTTNews) - The United States Department of Justice announced Monday that Japanese companies Canon Inc. (CAJ) and Toshiba Corp. (TOSYY.PK, TOSBF.PK) have agreed to settle federal charges for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino Act or HSR Act. The charges were related to Canon's $6.1 billion acquisition of Toshiba Medical Systems Corp. or TMSC from Toshiba in 2016.

The DoJ noted that the companies failed to observe the required waiting period. The complaint indicated that the scheme devised by Canon and Toshiba "had no purpose" other than to complete the sale of TMSC prior to March 31, 2016, and avoid the HSR Act's waiting period requirements.

The companies agreed to pay $2.5 million each to settle the charges. Under the settlement, both companies need to implement HSR compliance programs and comply with inspection and reporting requirements, along with other obligations imposed under the consent order.