According to previous reports, in November last year, Xerox formally made an acquisition offer to HP. It plans to acquire HP with cash and stock of $ 22 per share, valued at about $ 33.5 billion, and issued two bids on November 17 and 24. , But were rejected by HP. On February 10, 2020, Xerox Corporation updated the latest offer for HP, from the original plan of $ 22 per share to $ 24 per share, with a total purchase price of about $ 34 billion.
On March 5th, HP Board Chairman Chip Bergh stated, "This acquisition offer ($ 35 billion) will put the combined company on an excessively high level of debt, which is not bad for company shareholders. Responsible. HP calls on shareholders to reject Xerox's takeover offer, saying that the offer will give Xerox shareholders disproportionately high returns relative to HP shareholders. "
Berg also noted that "if this (merger), there will also be unrealistic and unachievable synergies that endanger the entire company."
In addition, according to the Nikkei News Agency report, Canon's president and CEO Mitarai Fujifu previously stated, "If Xerox takes over US office equipment maker HP, Canon will terminate its 35-year partnership with HP."
It is reported that Hewlett-Packard, which purchases laser printer components from Canon, is one of Canon's largest customers, and its sales account for nearly 14% of its total turnover. But Xerox's acquisition will bring strong competitors to Canon's own office equipment business.
"The foundation of this partnership is first and foremost the trust relationship between the top management of the two companies. At the same time, it also involves a large number of technical exchanges that have been gradually established during decades of cooperation. "
Data show that HP contributed approximately 540 billion yen to Canon's 2018 revenue of 3.95 trillion yen. In this way, if the business between the mid-range and HP, Canon will cause great losses.