Kodak Acquires A Part Of Imation Imaging Activities

The European Commission has approved an operation by which the Eastman Kodak Company ("Kodak") acquires certain businesses from Imation Corporation ("Imation"). The sectors involved are Imation's medical imaging business worldwide, Imation's dry imagesetting film technology, and Imation's document imaging business in Germany.

The investigation made preliminary by the Commission concentrated on the medical imaging sector, where overlaps and market shares were sufficient to merit detailed assessment. The Commission's assessment found that in this sector, markets generally are likely to be moving from national to a European-wide. Although the operation would lead to an increase in combined market shares for certain business activities connected with X-ray film technology and "wet laser" "imagers" (i.e. printers), no serious concerns arose due to factors such as the presence of strong competitors; the type of procurement arrangements in use on the part of hospitals and other such pursachers, and the fact that conventional medical imaging technology was in decline.

Furthermore, although Kodak would inherit Imation's strong position in dry imager technology, the Commission found this was a new and developing technology, and there were grounds to suppose that Imation's early lead would be eroded as other suppliers developed competing products. Therefore, the Commission decided not to oppose the operation and to declare it compatible with the common market.

This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.