European Union Approves Konica, Minolta Merger with Conditions
The European Union Commission approved the merger of Japanese camera and copier manufacturer Konica Corp. and Minolta Co. Ltd., subject to Konica divesting its stake in Japanese photometer company Sekonic Co. Ltd., Dow Jones Business News reported.The investigation found both companies' activities are largely complementary although overlaps were found in the markets for photocopiers as well as compact and digital cameras. But the commission said these overlaps didn't give rise to competition concerns since the merged entity would still lag behind market leaders Ricoh Co. and Canon Inc., said the report.
Under the merger agreement, both companies will join forces under a new holding company to be called Konica Minolta Holding Inc. Minolta will be de-listed and one Minolta share will be exchanged for 0.621 shares in Konica. The share swap will be concluded by August. The Konica brand will be used for film sales while the Minolta brand will be used for camera sales.
