On Thursday, finally, China approved the acquisition deal between HP and Samsung’s printing business. The country implemented a deal with certain restrictions. HP Inc. purchased Samsung Electronics’ printing business for $1.1 billion dollars. HP announced this probable business acquisition in 2016.
US firm’s superiority in the laser printer market
China also cited its concerns about the US firm’s superiority in the laser printer market. After the announcement of the HP deal in September 2016, it was hoping to disrupt the $55 billion copier market. Moreover, the company was focusing on multifunction printers. Furthermore, we observed that HP was focusing on a sort of convergence. As Reuters reported, the brand is embedding mobile and cloud printing technologies to its product solutions.
It hoped at the time to close the transaction within 12 months, pending regulatory review.
China’s Ministry of Commerce published a statement where it said the sale of A4 format laser printers in China should maintain fairness and reasonableness. Additionally, the firm must report every six months on their prices and data to the ministry.
HP must not buy any stakes in other A4 printer manufacturers in China even if they are a minority equity investment, it said.
It must not adapt its printers to restrict compatibility with third-parties or claim in advertising that its printers are not compatible with other suppliers, the ministry said. However, regarding the news, Samsung declined to comment.