Fuji Xerox President Predicts Xerox-Fujifilm Partnership Won’t End

According to Reuters, the president of Fuji Xerox – the decades-old joint venture between Xerox and Fujifilm – the current dispute between the two companies won’t lead to the end of the technology partnership.

Last month, new Xerox CEO John Visentin had written a public letter to Fujifilm Chairman and CEO Shigetaka Komori stating that Xerox will not renew its joint partnership in Fuji Xerox with Fujifilm when the partnership agreement ends in 2021. The contentious letter also stated that it’s Fujfilm that is the “bad actor” in the ongoing rift between the two companies, who together have jointly operated Fuji Xerox for decades, with Fujifilm owning 75 percent of Fuji Xerox, and Xerox owning 25 percent of Fuji Xerox. In turn, Fujifilm said if that happens, it will sell in Xerox territory, which is Europe and North America.

However, Fuji Xerox President Kouichi Tamai told Reuters in an interview: “I’m confident a breakup will not happen because that wouldn’t make sense (for Xerox) in terms of the energy, money and time it would take to do so.”

In May, Xerox pulled out of the proposed merger that would created a combined Xerox-Fuji Xerox. In turn, Fujifilm filed a breach-of-contract lawsuit against Xerox in June. Xerox then stated it may not renew its joint venture in Fuji Xerox. Xerox relies on Fuji Xerox for most of its printers and copier/MFPs. It said that instead it would source those products from other vendors, and sell directly to customers in Fuji Xerox’s primary Asia-Pacific market.

According to Reuters, for Fuji Xerox, a breakup with Xerox could result in the loss of over $1 billion in revenue. But Fuji Xerox’s Tamai said turning to other vendors would be disadvantageous for Xerox.

“That would increase costs for Xerox,” he said. “It is my responsibility to convince Xerox that it is cheaper and more reasonable to source products from us.

“My mission is to persuade Xerox executives that the merger would be the best solution for both companies,” he said. “Daily interactions with them actually have given me a feeling that many at Xerox actually support the merger.”

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