Citing the current global health crisis related to the COVID-19 coronavirus, tech giant Xerox has dropped its bid to merge with competitor HP.
“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,” Xerox said in a March 31 statement. “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.”
Xerox will not nominate candidates to HP’s board, and has withdrawn its offer.
“We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future,” HP said in its own March 31 statement.
Xerox had previously led a hostile takeover bid of HP which would combine the two companies. In November 2019, HP’s board unanimously rejected the offer, arguing that it undervalued the company and wasn’t in the best interest of shareholders.
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