In terms of the graphic arts market Canon’s purchase of Oce will give it entry to new markets, especially in the rapidly developing high speed inkjet web in which Oce is a key player, and into high speed web fed monochrome. There wil be some duplication in the cut sheet digital printers sector, but the merger will clearly strengthen the product range, distribuition, marketing and r+d of Canon.
Canon believes buying Oce will propel it to top spot in digital printing, ahead of Xerox and Ricoh. Oce will add €3bn to Canon’s turnover. Canon says there will be no redundancies as a reuslt of the takeover.
Oce has long been thought of as a target for a takeover by one of the Japanese giants, although most people’s money was on Konica Minolta, with the two companies having various distriobution and oem agreements with each other in markets around the world, including in Austraila. Konica Minolta primarily developed the colour engines with Oce majoring on monochrome. In the complexity of the modern environment Oce also has agreements with Myakoshi, which supplies the engine for its Jetstream h8igh speed web.
Tsuneji Uchida, president and COO of Canon says, “We are delighted to welcome Océ, the ideal partner in every respect, into the Canon Group. Through the merger of Canon and Océ, 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.”
Rokus van Iperen, chief executive officer of Océ, says, “I am very much looking forward to joining forces with Canon. There is a great fit between our companies, which share similar values and a strong commitment to technology and innovation. I am proud Canon intends to team up with Océ, based upon the prominence of our customers and technology and of course our people that have shaped our company for generations.
“This is the best possible combination in the consolidating global printing industry and will deliver scale in R&D, manufacturing and distribution. The combined organisation provides us with access to a huge sales network in Asia as well as mutual cross selling opportunities in Europe and the United States. Our customers will benefit from an outstanding product and services offering and our employees will be offered appealing development opportunities.”
The companies say their intention to create the overall number one presence in the printing industry derives from a complementary fit in terms of product range, channel mix, R&D, and business line. They intend to build on their track records in innovation and client servicing. They state that Océ will remain a separate legal entity as a Canon division, headquartered in Venlo in the Netherlands.
The acquisition faces few impediments. Océ says its management and supervisory boards unanimously support and will recommend the intended offer; holders of the depository receipts for Océ’s cumulative preference shares have agreed to sell their interests to Canon; and another large shareholder has provided an irrevocable undertaking to tender. In addition, they say that they will respect existing labour agreements, with no redundancies as a result of the offer.
