Canon takes over Oce in $A1.169 billion deal

Seismic shift in the world of digital printing as Japanese giant, Canon, stakes its claim to be number one.

News of Canon’s intention today to acquire all ordinary shares of Océ at $13.86 AUD in a three-year integration plan set tongues wagging from all corners of the globe in what has been one of the biggest announcements from the printing industry this year.

Canon’s president and COO, Tsuneji Uchida, described Océ as “the ideal partner in every respect.”

“Through the merger … we believe that we will be able to realise clear benefits, not only in the area of R&D, but also in terms of product mix and marketing and are confident that this winning combination will contribute greatly to our goal of becoming the overall number one presence in the printing industry,” he said.

Rokus van Iperen, (pictured) CEO of Océ, has always been open about the possibility of a takeover. In an interview with Print21, he said that: “If we're ever taken over, it's more likely to be by a strategic player than by private equity – but I don't think our three big competitors are interested."
 
Much has changed in the world of printing since then. Today, he welcomed the news. “This is the best possible combination in the consolidating global printing industry and will deliver scale in R&D, manufacturing and distribution,” he said.

Following the completion of the merger, Océ will remain a separate legal entity and will become a division within Canon, with headquarters in Venlo, the Netherlands, where it will be responsible for wide format, commercial printing and business services worldwide. Océ’s office activities will be integrated into Canon’s office imaging products division, while Canon’s large format printing will be merged with the Océ production printing division.

Océ also has the option to terminate the agreement with Canon if a third-party comes fourth with an offer that Océ’s management board and supervisory boards believes is superior to Canon’s offer. Already, there has been talk and speculation in the media that a bid may come from Konica Minolta.

In a statement, Canon said that it intends to refinance short and long-term debt from Océ, which, at 31 August 2009, stood at €704 million.