Scandal-plagued Toshiba sells medical unit to Canon

Staff Writer
Columbus CEO

TOKYO (AP) — Scandal plagued Japanese electronics maker Toshiba Corp. is selling its medical unit to Japanese camera maker Canon Inc. for 665.5 billion yen ($5.9 billion).

Both companies said Thursday the deal has been completed. Canon has been eager to expand its medical equipment business. It said the acquisition of Toshiba Medical Systems Corp. as a 100 percent-owned subsidiary would help.

Toshiba Medical's strengths are in X-ray and ultrasound systems.

Tokyo-based Toshiba has been struggling with a major accounting scandal over disclosures that company officials doctored accounting books for years after setting unrealistic earnings targets.

The company also is facing major problems in its nuclear business after the March 2011 accident at a plant in Fukushima, northeastern Japan, which sent three reactors into meltdowns.