Fujifilm: Xerox Plan to Sell Directly in Asia-Pacific Will be “Extremely Difficult”
CRN reports that Fujifilm has responded to a published letter written by Xerox CEO John Visentin on Monday to Fujifilm Chairman and CEO Shigetaka Komori stating that Xerox will not renew its partnership in 2021 with the joint Xerox-Fujifilm venture, Fuji Xerox, and instead plans to sell directly in the Asia-Pacific market by itself – as well as source products from other sources of instead of from Fuji Xerox.
According to CRN, Fujfilm said in a statement: “It is again no surprise to hear Xerox’s pretense to sell its products directly into the growing Asia-Pacific market. However, realistically speaking, we believe that it would be extremely difficult for Xerox — which does not currently possess any marketing channel in Asia – to build its own channel from scratch.”
In the letter to Fujifilm’s Komori, Visentin also called Fujifilm’s hopes of renegotiating a deal to purchase Xerox “delusional.”
Last week, Fujifilm sued Xerox for breach-of-contract in the U.S. District Court of Manhattan for $1 billion.
In the letter published Monday, Visentin also said that Xerox scrapped the sale of Xerox to Fujifilm because of an “ongoing” accounting scandal at Fuji Xerox – 75 percent of which owned by Fujifilm, with 25 percent owned by Xerox. The Fuji Xerox accounting scandal involved massive revenue overstatements at a Fuji Xerox subsidiary, Fuji Xerox Australia and New Zealand. Visentin’s letter also stated that there could be similar such fraud at other Fuji Xerox subsidiaries.
In response, Fujifilm denied that any accounting scandals are ongoing, and instead stated: “Xerox’s argument on Fuji Xerox’s accounting issue is wrong. The accounting issue at Fuji Xerox is properly resolved and no longer exists. Moreover, we have completed the audit in all of Fuji Xerox’s operating companies in its territory, including China, by more than one auditing company.”
- June 2018: Xerox to End Fujiflm-Fuji Xerox Partnership, Source Products from Other Vendors
- June 2018: Judge Refuses to Lift Injunction Barring Xerox-Fujifilm Deal
- June 2018: Fujifilm Sues Xerox for $1 Billion over Failed Merger Deal
- June 2018: Fujfilm May Walk Away from Xerox Deal
- June 2018: Fujifilm Sues Xerox Over Scrapped Sale and Merger
- May 2018: Xerox Calls Off Deal with Fujfilm, Will Install New Leadership
- May 2018: Fujifilm to Sue Xerox over Scrapped Xerox-Fuji Xerox Merger Deal
- May 2018: What’s Next for Xerox? Private Equity Sale, Competitor Sale, or Icahn Plan?
- April 2018: Preliminary Injunction Blocks Proposed Xerox-Fujifilm Deal