ROCHESTER, N.Y. (WROC) — Due to the outbreak of COVID-19, Xerox will no longer continue to pursue an acquisition of HP.
Both companies have struggled as demand for printed documents has decreased, according to the Wall Street Journal.
The journal reported in November that HP had received a proposal from Xerox. The proposal was a $33.5 billion offer to buy out HP, which HP then rejected.
In February Xerox announced it would raise its offer to $35 billion. The offer was put on hold two weeks ago, and was taken off the table Tuesday.
Statement from Xerox:
The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. (NYSE: HPQ) (“HP”). Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors.
While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations.
There remain compelling long-term financial and strategic benefits from combining Xerox and HP. The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.
Xerox’s Board of Directors and management team are grateful for the significant backing we received from both Xerox and HP stockholders throughout this process. We thank the talented individuals who agreed to stand for election to the HP Board, making time in their busy schedules to take on this responsibility when HP’s existing Board did not. And finally, we thank the banks who agreed to finance this acquisition, who never wavered in their commitments, even during the market turmoil caused by COVID-19.