Canon bids to acquire Oce

[GeorgeA]

Reuters is carrying the story that Canon has announced a $1.1 billion bid for Oce:

Canon seeks printer power with $1.1 billion Oce bid | Deals | Reuters

The article speculates about a possible counter-offer from HP or Kyocea, but concludes these are not very likely.

[Cory Smith]

Here are a couple of articles (free premium links) that provide some analysis:


Canon's Acquisition of Océ: The Details - Printing Industy Analysis from WhatTheyThink


Canon and Océ, Can They Become Number One? - Printing Industy Analysis from WhatTheyThink

[lfelton]

Interesting development...

Major Océ shareholder opposes Canon deal

...it's also interesting that K-M have now ruled themselves out of the running as a buyer.

[CSimpson]

So...Is this a done deal?

[GeorgeA]

I'd say it's not a done deal.

Orbis, the major shareholder, already holds 10% of the shares, and they could get together with others who collectively hold 5%. Anything over 15% would give them the ability to block the sale under Dutch law.

The implication is that it could end up in the odd situation of Canon owning the majority of equity without actually controlling the company.

The German press is saying that Orbis would prefer to see Oce's various businesses sold off individually--they think the value would be higher that way.

[dpolglaze]

Oce's CS series digital presses and printers are rebranded KM engines (KM C6500's. As the former National Color Specialist supporting the CS series, if Oce is acquired by anyone other than KM, they will have a very hard time--impossible really--recovering and/or maintaining the huge market share they achieved in cut-sheet color over the last few years. Also, the CS665--when paired with a Fiery server--can achieve the Fogra certification, and that alone took us a very long time to acheive. I could go on, especially about the tandem, tri and quad systems they are now installing, but I hope they make the right decision on this if one is forth-coming

[adam]

Océ management conducted a well-attended press teleconference today to provide further details of its acquisition by Canon. Jan Hol, who was interviewed earlier by WhatTheyThink, was on the line from Europe, and North America was represented by Mal Baboyian, president, production printing systems, Océ North America, and Joe Skrzypczak President and CEO of Océ North America. Océ reiterated that the intent of the acquisition was to create a global leader in the printing industry and to deliver scale in manufacturing, sales and marketing and R&D. Océ had been seeking an arrangement of this nature because it was clear that increased scale was among the essential success factors to create value and prosperity for stakeholders, something that was increasingly difficult for Océ to achieve as a standalone entity.

Read the rest from today's call at Print CEO Print CEO - Printing Industry News and Opinion – Canon and Océ: More Details

[LugNut]

Canon needs to do something, but this seems more like a lesser of 2 evils approach rather than a wise and calculated move. Then again, what do I know about the inner workings of this deal? NOTHING. I wonder if there is another aspect to this deal still waiting to be played out?

[VDP Jedi]

Would like to hear from anyone about how this integration is proceeding. I noticed Canon/Oce sharing at Graph Expo, but have not heard Canon Sales Executives pushing OCE solutions or OCE Sales pushing Canon equipment...to me this merger looks to be messy - two large manufacturers with two very different corporate cultures.

I do like some of the OCE equipment, put am very hesistant moving forward with this potential storm brewing...