Xerox has announced that it will no longer attempt to acquire computer-hardware giant HP due to the COVID-19 pandemic, which has had (and continues to have) a devastating effect on the world and its markets. According to the company’s press release, Xerox is putting the health and safety of its workers ahead of what has largely been reported as a hostile takeover.
“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.,” Xerox wrote. “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.”
“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.”
In its own statement, HP confirmed that it was in a pretty good spot financially, highlighting the pointlessness of Xerox’s offer. That’s especially evident based on the companies’ wildly different market caps: HP and Xerox are worth $25 billion and $4 billion, respectively.
“We remain firmly committed to driving value for HP shareholders. HP is a strong company with market leading positions across Personal Systems, Print, and 3D Printing & Digital Manufacturing,” the company said. “We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future.”