China approves HP's $1.1bn buyout of Samsung's printer business

Although a number of caveats have been placed on the final deal

The Chinese government has approved the sale of Samsung's printer business to HP Inc for $1.1 billion, although fears over a market monopoly meant a number of restrictions were placed on the final deal.

HP Inc first announced its takeover bid last September as it pushed into the $55 billion copier industry, placing greater focus on multi-function printers and IoT-enabled products. At the time it said it had hoped to close a deal within the following year.

Although the deal was approved late Thursday night, the Ministry of Commerce said that the sale of HP laser printers in China should be "fair" and based on "reasonable terms", according to Reuters. A clause in the agreement forces HP to report their prices and sales data to the Ministry every six months.

Further restrictions in the deal are clearly an effort by the Chinese government to prevent the US company from encroaching any further on the printer market. One of the clauses bars the company from acquiring any further stakes in printing companies in China, even as minority partners.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Another says that products should not be altered to restrict their use with third-parties, and any existing products that do should explicitly state this in their adverts.

HP's acquisition will see over 6,500 printing patents added to its intellectual property, as well as over 1,300 research scientists. The company expects to close the deal inside the fourth quarter, so sometime before 31 December, according to a spokesperson speaking to Reuters.

IT Pro has contacted Samsung for comment. 

Speaking at the time of the announcement last year, HP CEO Dion Weisler said: "The acquisition of Samsung's printer business allows us to deliver print innovation and create entirely new business opportunities with far better efficiency, security, and economics for customers."

Samsung branded printers will still be available in some regions, but these will be supplied by HP instead. Once the deal closes, it will represent HP's largest ever print acquisition.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/hardware/354336/the-it-pro-products-of-the-year-2019-all-the-years-best-hardware
Hardware

The IT Pro Products of the Year 2019: All the year’s best hardware

24 Dec 2019
Visit/printers/29013/best-printers
Hardware

Best printers 2020

18 Dec 2019
Visit/hardware/peripherals/354337/lexmark-c3224dw-review-cheap-but-not-necessarily-good-value
peripherals

Lexmark C3224dw review: Cheap, but not necessarily good value

14 Dec 2019
Visit/office-printers/26919/choose-the-right-colour-printer-for-your-business
Hardware

Choose the right colour printer for your business

29 Nov 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020