Canon Discusses Implications of HP’s Acquisition of Samsung Printer Business

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In a presentation to investors and analysts this week, Canon Inc. Executive Vice President and CFO Toshizo Tanaka discussed Canon’s third-quarter earnings (see story here), as well as HP Inc.’s pending acquisition of Samsung’s Printer Business Unit for $1.05 billion (see story here).

According to Tanaka, Canon will “work even closer with HP, deepening our cooperation as we work to improve our performance, aggressively carrying out all measures aimed at recovering printer demand.”

Tanaka said that in regards to HP’s pending acquisition of Samsung’s printer business, “we expect negligible impact on our business.” According to Tanaka, ” Based on what HP announced, the main purpose for the acquisition is to enter the copier market. We both believe that this will not change our partnership in the laser-printer space and that mutual growth can be achieved.”

Regarding the effect of HP’s acquisition on Canon’s copier/MFP business, Tanaka said that: “a lot remains unclear, such as how service and maintenance will be managed in the future. Although we need to continue monitoring the situation, this market has high barriers to entry. As such, the possibility of this M&A (merger and acquisition) suddenly becoming a threat is unlikely.”

While Canon’s financial results for its third-quarter were lackluster, and it downgraded its forecast for its fourth quarter and full year, Tanaka is projecting 20-percent sales increase for office-imaging supplies versus its third quarter.

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