EU Charges Merck, General Electric, Canon With Breaching Merger Rules

EU Charges Merck, General Electric, Canon With Breaching Merger Rules

EU Charges Merck, General Electric, Canon With Breaching Merger Rules

General Electric, German drugmaker Merck KGaA, and Japan's Canon risk hefty fines after European Union antitrust regulators accused them of providing misleading information during separate merger deals.

As a result, Honeywell acquired the technology only after a year's delay.

The EU antitrust watchdog has opened formal probes into General Electric Co. "However, this happened with a delay of nearly one year and only because the Commission was subsequently made aware of the issue by a third party" the commission said.

The Commission had concerns with the merger before it took place.

Merck KGaA was accused of failing to provide information about an innovation project for chemicals during the merger review of its Sigma-Aldrich takeover approved in June 2015. The commission says Canon got an interim buyer to buy 95 percent in the share capital of Toshiba Medical for the bargain price of $913, then paid $6 billion for the remaining 5 percent and share options over the interim buyer's stake.

The complaints against General Electric and Merck KGaA focus on misleading or incorrect information the companies provided during a merger review. "And it should be the companies themselves telling us about their future strategies".

"We can only do our job well if we can rely on cooperation from the companies concerned - they must obtain our approval before they implement their transactions and the information they supply us must be correct and complete", said EU Competition Commissioner Margrethe Vestager. Japan's Fair Trade Commission warned Canon past year for implementing the Toshiba deal before seeking regulatory approval.

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