Xerox scraps HP takeover

The print vendor’s controversial M&A pursuit of its rival has ended due to the ongoing COVID-19 crisis

Xerox has cited the current "market turmoil" from the COVID-19 pandemic as the reason for ending its $34bn pursuit of HP.

The months-long saga between the two vendors seemed to have turned a corner last month when HP CEO Enrique Lores said he was "open to engagement" with Xerox over the potential merger.

"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," stated Xerox.

"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."

Xerox called the move "disappointing" but said that the health of its employees, customers, partners and stakeholders is its main priority.

However, it hinted that the door wasn't fully closed on a potential future bid.

"There remain compelling long-term financial and strategic benefits from combining Xerox and HP," it continued.

"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.

"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."