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Friday, August 26, 2005
Canon to Take Over Two NEC Subsidiaries


Canon said it had agreed to purchase part of NEC machinery, as well as to Anelva Corp., a subsidiary of NEC Corp that manufactures vacuum apparatuses.

Canon said it had earmarked 5.1 billion yen (46.8 million dollars) for the purchase of NEC Machinery, in which NEC holds a 39.6 percent stake.If the purchase is successfully completed, Canon will hold a 53.9 percent stake in NEC Machinery, Canon said Thursday.

With the aim of manufacturing surface-conduction electron-emitter display (SED) panels inside the company, Canon will also acquire Anelva Corp., a subsidiary of NEC Corp. . Canon has reached a basic agreement with NEC to acquire all Anelva shares currently held by NEC. Canon also said it has decided to buy from NEC 100 percent of Anelva Corp, which makes flat panel devices, for an undisclosed sum.

In manufacturing SED panels at a joint company formed by Canon and Toshiba, Canon intended from the beggining to differentiate its products from other competitors' by increasing the portion of production systems manufactured by itself and blackboxing the technology. Currently, however, it is Toshiba's subsidiary, Shibaura Mechatronics, that primarily develops SED panel production systems, with Canon hardly involved with the development. Through the acquisition of Anelva, Canon aims to introduce its own group company's manufacturing systems into SED panel production.


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