Fujifilm Holdings Corp. said Tuesday it will turn Fuji Xerox Co. into a wholly owned subsidiary by acquiring an additional 25 percent from Xerox Co. of the United States for $2.3 billion (¥253 billion).
The deal also means Fujifilm has officially given up on its earlier plan to acquire the U.S. maker of printers and copy machines.
In January 2018, Fujifilm agreed with the top management of Xerox that it would acquire a 50.1 percent stake in the U.S. firm and merge it with Fuji Xerox.
But the merger plan was canceled by Xerox due to opposition from major shareholders.
As a result, Fujifilm filed a damages lawsuit, which it now plans to drop.
The transaction was unanimously approved by the boards of directors of Fujifilm and Xerox and is expected to be completed by the end of this month.
Fuji Xerox, which was founded in 1962 as a joint venture by the two firms and operates in the Asia-Pacific market, will continue to supply Xerox after completion of the transaction, according to a press statement from Fujifilm.
"This transaction is an ideal next step for Fuji Xerox and Fujifilm that we believe serves our stakeholders well and reflects our commitment to create innovative products that contribute to society," said Shigetaka Komori, Fujifilm chairman and chief executive officer, in the press statement posted on Fujifilm's website.