Brussels, 14/07/2003 (Agence Europe) - The European Commission has cleared the proposed acquisition of Minolta by Konica, subject to certain commitments being taken. As notified, the operation could have created a dominant position on the photometer market. Konica and Minolta are both Japanese manufacturers of imaging products and equipment, including cameras, photocopiers and photometers. The investigation carried out by the Commission showed that the activities of both companies are largely complementary. In particular, the operation will not pose a problem of competition on the market of photocopiers and cameras, since the entity formed by the merger will remain smaller than the current market leaders, Ricoh and Canon (for photocopiers) and Olympus (for cameras). On the other hand, the companies combine market shares in the sectors for photocopiers, compact cameras, digital cameras and photometers. The only real problem was noted for the photometer market where the new entity is said to have enjoyed a dominant position. In order to resolve the problem, Konica proposed giving up a large part of its activity in this sector, namely the stake that it holds in the Japanese company Sekonic. The Commission, which worked in close cooperation with the US Justice Ministry on this dossier, agreed to the commitment which resolves the problem posed. The operation had been planned early January by both companies. The merger will be implemented through the creation of a common holding called Konica Minolta Holdings Inc, via an exchange of shares following which only Konica shares will remain quoted on the stock exchange. Both partners are expected to make an annual turnover of 1300 billion yen for the financial year 2005/2006.