Fujifilm Holdings is negotiating a deal that could see the Tokyo-based company take a controlling interest in long-term joint-venture partner Xerox, according to a report in the Wall Street Journal.
Xerox Corp has been under increasing pressure because of shrinking demand for its printer and copier business. "Xerox desperately needs new leadership," Carl Icahn, the biggest shareholder in Xerox, said in a letter to shareholders last month.
Xerox and Fujifilm have been partners for over half a century and in 1962 jointly established Fuji Xerox as a 50-50 joint venture. Fujifilm increased its stake in Fuji Xerox in 2001 to 75%, while Xerox still owns 25%.
The WSJ reports that “an array of possible deals" are on the table but it’s understood a full takeover is not under consideration.
Xerox last year completed the separation of its business services division – now known as Conduent – to create two multi-billion dollar publicly-traded companies.
Jeff Jacobson was named CEO of the document technology and graphics business – which retained the Xerox Corporation name. Sales at Xerox fell 5% to $US2.49 billion in the July-September quarter. Xerox has a market value of about $US7.7 billion, while Fujifilm is valued at around $US22 billion.
Both companies declined to comment on the report.