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Xerox withdraws proposal to buy HP due to the COVID-19 pandemic

Xerox has announced that it will end an attempt to acquire HP, a $ 33.5 billion proposal it had made in November 2019. The US company says that due to the COVID-19 pandemic plaguing the world , is reconsidering its priorities, opting to ensure the safety of employees, customers, partners and shareholders.

The company indicates in a press release that, although it feels disappointed that it is unable to carry out its intentions, the current circumstances lead it to improve the response to the pandemic.

Nevertheless, Xerox recalls that the purchase of HP would be a mutually beneficial situation at the financial and strategic level. HP's refusal to interact significantly for several months and the constant tactics of delay in the process are an disadvantage to its shareholders who have shown their support in the face of the possible acquisition, the company adds.

In response, HP again underlines that it is a strong company with a stable financial position that will allow it to navigate unexpected challenges similar to the global pandemic. Previously, Enrique Lores, the company's CEO, stated that HP is focusing on the COVID-19 response.

Xerox's decision thus put an end to a saga that made some ink run. In November 2019, the company made a proposed acquisition of HP worth 33.5 billion dollars. The company now led by Enrique Lores rejected it unanimously, saying that it significantly underestimated it and did not serve its interests.

Still in the same month, the company in charge of John Visentin, decided to issue an HP ultimatum, which indicated that if he did not obtain a favorable response, he would present the case directly to the company's shareholders. HP reiterated that the proposal "significantly underestimates it. Technology has made it clear that it considers Xerox's aggressive performance opportunistic, since the company wants to forge a partnership without providing enough information.