Canon Inc. President Fujio Mitarai, who has 20 years experience working in the United States, will take the helm of Japan's most powerful business lobby, the group said Monday.

Mitarai, 70, succeeds Toyota Motor Corp. Chairman Hiroshi Okuda, when Okuda's term ends in May next year, a spokeswoman for Tokyo-based Nippon Keidanren said.

Keidanren, which groups about 1,300 of Japan's top companies, wields considerable influence in setting government policy and swaying public opinion.

It has aggressively backed the economic reforms of Prime Minister Junichiro Koizumi, including his calls for smaller government, fewer public employees, revamped pension and welfare systems and postal privatization.

Mitarai, Keidanren's vice chairman, has been credited with leading Canon on a successful growth track with strong sales in color copiers and digital cameras at a time when Japanese electronics makers have been struggling, sometimes sinking into losses. Canon is expecting record high profit for the full year ending Dec. 31 of 384 billion yen ($3.2 billion).

His appointment had been largely expected in recent weeks after a few Japanese newspapers reported that he was being considered. There had been earlier speculation that Fujio Cho, former Toyota president, may also be a candidate.

Media reports said that some businessmen had suggested the leadership should be handed over to an executive at another successful Japanese company.

A graduate of Chuo University's law department, Mitarai joined Canon in 1961, and worked in its U.S. operations for two decades, becoming president of Canon U.S.A. Inc. in 1979. He became president of Canon Inc. in 1995, and chief executive two years later.

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