Fujifilm Case Study

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Fujifilm’s Strategic Takeover

On Wednesday, January 31, 2018, Fujifilm announced its acquisition of Xerox for $6.1 billion dollars. From the proceeds of the purchase, Fujifilm will buy 50.1% of new Xerox shares. Xerox, a U.S. based company, has been a part of a joint venture with Fujifilm called Fuji Xerox for over fifty years, in which Fujifilm owns seventy-five percent. This joint venture accounts for almost half of Fujifilm’s sales and operating profits. Xerox’s growth has been struggling while the demand on office printing is waning. The revenue from photocopy products purchases have slowed down for both companies due to the increase of many businesses going paperless. Fujifilm plans to streamline the copier business with emphasis on
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The article referred to the combination of Fujifilm and Xerox as both a merger and an acquisition. Both terms were used interchangeably within the article. I believe that the deal between Xerox and Fujifilm isn’t quite what our textbook defines as a merger, a combination of two or more companies in a single corporate entity, usually assuming a new name. Instead, I believe that the use of acquisition is more appropriate because an acquisition is a combination of companies where the acquirer purchases the other company (acquired) and absorbs its operations. Since Fujifilm plans on purchasing Xerox for $6.1 billion dollars, this supports the class’s textbook definition of acquisition. Fujifilm and Xerox also have a previous work history together, partnering in a joint venture. Our textbook defines a joint venture as a type of strategic alliance that involves the establishment of an independent corporate entity that is jointly owned and controlled by the two partners. There is a fifty-year joint venture between Fujifilm and Xerox creating a new entity of each company, Fuji Xerox. Both Jeff Jacobson, Xerox CEO, and Shigetaka Komori, Fujifilm CEO, decided to keep the name Fuji Xerox, supporting the idea of calling this combination of companies an acquisition rather than a merger. Both CEOs also agreed to keep Xerox’s listing on the New York Stock Exchange. One strategic objective Fuji Xerox plans to achieve from this acquisition is expanding the business into a new category venture. There will be a shift in the current focus of streamlining the copier business and move more towards a document solutions service, which will fill in the gaps that Fuji Xerox has been missing. Many businesses today are completely green and

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