Fuji Xerox to become a wholly owned Fujifilm unit
The transaction also implies Fujifilm’s previous plan to purchase the U.S. photocopier and printer manufacturer has been formally scrapped.
Fujifilm negotiated with Xerox’s top management in January 2018 to buy a 50.1 per cent interest in the U.S. business and combine it with Fuji Xerox.
Yet Xerox abandoned the acquisition proposal because of resistance from shareholders.
As a consequence, Fujifilm has filed a claim for damages that it is now planning to drop.
The deal is accepted overwhelmingly by Fujifilm and Xerox’s boards of directors and is due to be completed by the end of the month.
Fuji Xerox, established in 1962 by the two firms as a joint venture and based on the Asia-Pacific region, would keep supplying Xerox upon conclusion of the deal, according to a Fujifilm press release.
“This deal is a perfect next step for Fuji Xerox, and Fujifilm that we consider serves our investors well, reflecting our dedication to creating products that contribute to society,” Fujifilm Chairman and Chief Executive Officer Shigetaka Komori said in a press release.