March 7, 2019 / 12:50 PM / 4 months ago

Xerox restructures business to create holding company

FILE PHOTO: The logo of Xerox company is seen on a building in Minsk, Belarus, March 21, 2016. REUTERS/Vasily Fedosenko/File Photo

(Reuters) - Xerox Corp said on Thursday it will implement a structure in which the printer maker will become a wholly owned unit of a new holding company.

The reorganization is expected to be implemented in mid-2019 and the new holding company’s shares will trade on the New York Stock Exchange under its current ticker “XRX”.

A holding company structure allows a firm to lower its tax bill, protect patents and diversify its unit’s businesses efficiently. In 2015, Google formed a holding company, Alphabet Inc, with distinct units under it.

Xerox scrapped a complex deal last year to merge with Fujifilm Holdings Corp after it ran into strong opposition from activist investors Carl Icahn and Darwin Deason.

In the last two quarters, Xerox topped profit estimates and undertook initiatives to streamline its business under the new management led by Chief Executive Officer John Visentin, an Icahn appointee.

Reporting by Sonam Rai in Bengaluru; Editing by Shounak Dasgupta

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