Fujifilm Holdings Corporation of Japan on January 31, 2018, entered into an agreement which would see it own 50.1 percent of Xerox Corporation shares. This end result would follow other complicated agreements in which Fujifilm’s subsidiary Fuji Xerox Co. Ltd. (Fuji Xerox) becomes a subsidiary of Xerox, which then allows Fujifilm to take the controlling interest in Xerox.
In a press release issued today about the move, Fujifilm outlined some of the reasons for the combination of the two companies, including the fact that Fuji Xerox (a document solutions company founded in 1962) is an entity formed with 75 percent capital invested by the Fujifilm and 25 percent by Xerox.
Fuji Xerox is known as a rare success story for a cross-border joint venture, explained Fujifilm, and the combination of the two companies Fujifilm and Xerox is the optimal conclusion for both. Fuji Xerox is mainly engaged in business in Japan and the Asia Pacific region, while Xerox is mainly engaged in business in U.S. and Europe.
Fujifilm explains it will make Xerox an owned subsidiary after Xerox makes Fuji Xerox a wholly owned subsidiary, and Xerox will be renamed Fuji Xerox. As mentioned, Fujifilm will hold 50.1 percent of the shares of the new Fuji Xerox, which will maintain its listing on the NYSE. It is also planned that the current brands of both Fuji Xerox and Xerox will continue to be used after the combination of the two companies.
Fujifilm explains the new Fuji Xerox will become the largest document solutions company in the world by revenue. Jeff Jacobson, current Chief Executive Officer of Xerox, will be appointed as Chief Executive Officer of the new Fuji Xerox entity.