Xerox Holdings Corp. has bowed out of its plan to acquire HP Inc., the company said in a statement Tuesday.
“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,” company officials said in the statement.
In addition to withdrawing its tender offer, Xerox also will not seek to nominate its slate of candidates for HP’s board of directors.
“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,” officials said.
Xerox said there remain “compelling” long-term financial and strategic benefits from combining Xerox and HP.
“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 officials added.
On March 13, Xerox said it had suspended its efforts for a hostile takeover of the printer giant, saying it would halt its planned presentations to HP shareholders, but stressing that the market’s recent decline had not or would not affect its decision to acquire the company.
Since the beginning of March, Xerox shares (NYSE: XRX) have fallen from $32.25 to $17.67 in afternoon trading Wednesday. One year ago, Xerox stock was trading at $33.38. HP shares (NYSE: HPQ) have fallen from $20.96 at the beginning of March to $14.97 on Wednesday. On April 1 last year, HP stock was trading at $19.79 per share.
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