© mucella1 dreamstime.com Electronics Production | February 01, 2018
Fuji Xerox and Xerox to combine to become a new Fuji Xerox
Fujifilm Holdings Corporation have entered into a definitive agreement with Xerox Corporation to combine Fuji Xerox Co., Ltd. and Xerox.
Fujifilm will own 50.1% stake of the combined company. The transaction has already been unanimously approved by both companies board of directors. The companies have been working together for a long time and been partners through the existing Fuji Xerox joint venture for the past 56 years. Fuji Xerox operates mainly in Japan and the Asia Pacific, while Xerox focuses on the U.S. and European markets. With this set up, the two companies will combine and Fuji Xerox becoming a 100% subsidiary of Xerox. Xerox will then change its name to “Fuji Xerox”. Fujifilm will acquire 50.1% of the new Fuji Xerox, and maintain its NYSE listing. The combined company is expected to deliver a total of USD USD 1.7 billion in total annual cost savings by 2022, with approximately USD 1.2 billion of the total cost savings expected to be achieved by 2020. As part of this cost improvement initiatives, the existing Fuji Xerox will go through a structural reform, in order to improve earnings and productivity.