Xerox is aiming to buy HP Inc. HP confirmed that it had received a potential business combination proposal from Xerox on Tuesday, 5th November 2019. As per Bloomberg, the company has not locked its final decision yet, and it will be made in the best interest of stakeholders.
“We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders,” the company said in the statement.
HP and Xerox both are American multinational companies. HP deals with printers and computers. Xerox sells print and digital document products, and its business is extended over 160 countries.
Xerox has offered more than $27 billion up to around $30 billion to HP. Perhaps it is a stupendous amount, so HP is taking the time to make the final decision. It is an astonishing fact that there is a tremendous difference between the market cap of the two companies. HP has a market share of $29 billion, whereas Xerox is just a tad over $8 billion! These stats seem so strange. The small company is buying the giant one.
The world has been shifted to digitization, so the HP printing business lagged.
In October, CNN reported the expected layoff of 16% of HP’s workforce. Still, HP reported its net revenue of the third quarter that is $14.6 billion. It has increased by 0.1% as compared to the stats of 2018.
In August, HP ex-president and CEO, Dion Weisler, said that he might step down in 2020. Well, he stepped down early and was replaced by Enrique Lores. Now, Mr. Lores is the head of the company’s printing and imaging division.
Upon the announcement of the succession plan, Mr. Lores’s statement was:
“The opportunities ahead are vast, and the need for us to keep reinventing is more important than ever,”
Fingers are crossed yet, and we cannot predict HP’s decision. HP stocks went up ~6.4% while Xerox was up ~3.6% today due to the news. Share your views below!
