After plenty of hot/cold and off on the Hoya – Pentax merger is set to go ahead.

Hoya will pay 105 billion Yen (approx. $860 million) for all outstanding Pentax shares. The deal could go ahead as soon as this weekt.

We fully expect this deal to strengthen Pentax’s position especially considering the growing importance of the lens market.

As described below, today, HOYA CORPORATION (“HOYA”) and PENTAX Corporation (“PENTAX”) have entered into an agreement to effect their management integration (the “Management Integration”) by making PENTAX into a wholly-owned subsidiary of HOYA through a tender offer by HOYA to purchase all shares of PENTAX (the “Tender Offer”) to be followed by a share exchange or other appropriate business reorganization transaction.

As announced in the press release titled “HOYA and PENTAX Reach Basic Understanding for Management Integration” dated December 21, 2006, of HOYA and PENTAX, based on the recognition that they are “the best possible business partners”, HOYA and PENTAX entered into a Basic Agreement for Merger (the “Basic Agreement”) on that date. This shared common understanding has remained constant. Notwithstanding our announcement by press release (by PENTAX on April 10, 2007 and HOYA on April 23, 2007) of our decision to abandon the merger planned for October 1, 2007 under the Basic Agreement, we have continued discussions on alternatives to the merger in order to achieve management integration and have consequently entered into this agreement.

Details of the Tender Offer and other related matters will be announced as soon as they become finalized.

Source: DPReview