Canon Inc. and Toshiba Corporation today announced an agreement by which Canon will purchase from Toshiba all of Toshiba's outstanding shares of SED Inc., which was jointly established by both companies. On completion of the purchase, SED Inc. will become a wholly owned subsidiary of Canon, effective January 29, 2007.
The decision was reached following discussions between Canon and Toshiba based on the assumption of prolonged litigation pending against Canon in the United States with respect to SED technology. As a result of the discussions, it was decided that Canon will carry out the SED panel business independently in order to facilitate the earliest possible launch of a commercial SED television business.
SED television sets are to be introduced in Japan in the fourth quarter of this year as originally scheduled, although Canon will reassess its future mass-production plans for SED panels.
While the decision announced today represents a major change in the relationship between Canon and Toshiba, each company is expected to make every effort for the smooth launch of its television business based on the high image quality achieved by SED technology.
Mr. Kazunori Fukuma, the current president of SED Inc. appointed from Toshiba, will resign from Toshiba, after which he will be hired by Canon and continue to serve as SED Inc. president. Also, plans call for Toshiba engineers on loan to SED Inc., in accordance with the terms of a new agreement to be entered into between SED Inc. and Toshiba, to continue their assignments for the transition period during which Canon will independently establish the SED panel business.
to Daily News