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Business deals

Fujifilm and Xerox both claim win in face-saving compromise

$2.3bn Fuji Xerox deal leaves uncertainty in future partnership

Fujifilm Chairman and CEO Shigetaka Komori was not all smiles at his news conference in Tokyo on Nov. 5. (Photo by Akira Kodaka)

TOKYO -- The deal announced Tuesday between Fujifilm Holdings and Xerox Holdings ends a nearly two-year dispute, giving both the Japanese company and the leadership at its U.S. partner, installed by activist investors Carl Icahn and Darwin Deason, a needed face-saving end to their unproductive battle.

Fujifilm expects the deal, under which it will buy out Xerox's 25% stake in joint venture Fuji Xerox and turn it into a wholly owned subsidiary, to lift annual group net profit by around $184 million a year. It anticipates a boost of at least $460 million to annual operating profit by fiscal 2024 via increased sales and cost synergies from consolidation.

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