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HP’s purchase of Samsung’s printer unit given green light
Posted on Friday, 06 October 2017 11:43
The Chinese Ministry of Commerce has approved the planned acquisition of South Korean conglomerate Samsung’s printer business by HP.
Reuters’ picked up on a statement issued by the body in which it laid out its conditions for the deal being allowed to go ahead, namely that the sale of A4 laser printers should be done on fair and reasonable terms in the People’s Republic.
In addition, HP must report its prices and related data every six months and cannot buy stakes in any other Chinese printer makers.
According to Reuters, the Ministry of Commerce initially had reservations over the acquiror’s potential dominance of the Chinese laser printer market.
HP initially agreed to buy Samsung’s printer division back in September 2016; under the terms it committed to pay USD 1.05 billion and initially hoped to close the deal within 12 months.
However, a spokeswoman for HP said completion is now expected to take place before the end of this year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 284 deals targeting computer peripheral equipment and software merchant wholesalers announced worldwide since the beginning of last year.
Of these deals, HP’s purchase of Samsung’s printer unit is the fourth-largest overall.
Top spot was taken by Tianjin Tianhai Investment acquiring US-based Ingram Micro, which was worth USD 6.00 billion and completed in December 2016, having been announced in February of last year.
This was followed by Unisplendour injecting USD 3.10 billion in wholly-owned subsidiary Unisplendour International Technology, while third place was taken by Tech Data’s USD 2.60 billion takeover of Avnet’s technology solutions business.
Samsung has unveiled a few purchases of its own recently, the most of recent of which was announced in July, when it agreed to pick up Greek text-to-speech software developer Innoetics.
This was preceded by June’s acquisition of New York-based virtual reality game firm VRB for USD 5.50 million.
© Zephus Ltd