As a result of macroeconomic and market turmoil caused by the coronavirus outbreak, Xerox has announced that it will no longer pursue its acquisition of HP Inc.
The Connecticut-based company first revealed that it was considering buying its fellow printing giant back in November of last year. However, after HP turned down its first offer to buy the company, Xerox then decided to go ahead with a hostile bid by taking its offer directly to its rival’s shareholders.
HP recently delivered a scathing letter to its shareholders in which it criticized Xerox’s decision to continue its pursuit of a hostile takeover amid the ongoing global crisis. Now though, it looks like Xerox has had a change of heart with regard to the takeover.
In addition to withdrawing its offer, Xerox also revealed that it will no longer seek to nominate its chosen candidates to HP’s board of directors.
In a press release, the company explained that it has now shifted its focus to protecting its employees during the global crisis, saying:
“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.”
While Xerox has officially announced that it won’t be pursuing its acquisition of HP, the company could possibly try again to do so in the future once things return to normal.