Menu
Fujifilm threatens to compete against Xerox if partnership not renewed

Fujifilm threatens to compete against Xerox if partnership not renewed

Tensions escalate between warring vendors

Fujifilm has threatened to compete against Xerox in Asia Pacific and challenge it in America and Europe if it failed to renew its technology agreement in 2021.

Xerox had said it would start sourcing products from new vendors to lower its dependency on Fujifilm and may not renew the agreement with the 56-year-old joint venture Fuji Xerox.

In a letter to Xerox's newly appointed CEO, John Visentin, Fujifilm CEO Shigetaka Komori said, "While Xerox presently has no marketing facilities here in Asia Pacific, we have global infrastructure that we can utilise for marketing worldwide.

"It would be enormously costly and difficult for Xerox to gain business in Asia Pacific.”

Fuji Xerox, 75 per cent owned by Japan's Fujifilm and rest by Xerox, handles contracts that supply global clients with Xerox services in the United States and Europe, as well as Fuji Xerox services in Asia.

As reported by Channel Asia, Fujifilm sued Xerox last week for well over US$1 billion, faulting the printer and copier company for succumbing to pressure from activist investors Carl Icahn and Darwin Deason in calling off a proposed merger agreed in January.

In a letter to Komori, Visentin, cited "massive and ongoing accounting fraud at Fuji Xerox" and "numerous contractual breaches" as grounds to not renew the joint venture when it expires in 2021.

“Simply put, Fujifilm has failed to prepare Fuji Xerox to comply with the laws and regulations applicable to U.S. public companies, and, as you and your advisors are surely aware, it would likely take years for any such compliance capability to be achieved," Visentin said in the letter.

In response, Fujifilm said Xerox's argument on Fuji Xerox's accounting issue is wrong. "The accounting issue at Fuji Xerox is properly resolved and no longer exists."

Xerox was not immediately available for comment outside regular business hours.

(Reporting by Sonam Rai in Bengaluru; Editing by Anil D'Silva)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Xeroxfujifilm

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments