Fujifilm May Seek Damages from Xerox over Scrapped Deal

May 14, 2018

Tokyo- Japan's Fujifilm Holdings Corp. said Monday it will file damages claims or take other appropriate measures against Xerox Corp. following the U.S. copy machine maker's decision to pull out of a deal for its acquisition by the Japanese company.

Xerox has no right to end the contract unilaterally, Fujifilm said in a statement released on Monday.

Fujifilm announced the acquisition deal in late January this year. Under the agreement, Xerox was to be combined with Fuji Xerox Co., a Fujifilm subsidiary partly held by the U.S. firm, and Fujifilm was to acquire a 50.1 pct stake in the new company.

The deal drew a strong backlash from major Xerox shareholders.

Xerox announced in the United States on Sunday that it would terminate the agreement, after reaching reconciliation with the major shareholders in exchange for the resignation of top Xerox officials who led the merger negotiations.

Fujifilm has appealed a ruling temporarily suspending processes for the acquisition deal, handed down by a New York state court last month.

The deal came after appropriate discussions, including on economic terms, Fujifilm said in the statement.

The acquisition would be the best option for the future of Xerox, Fujifilm said, adding that it will call for a rethink of the decision by Xerox. Jiji Press