Xerox Holdings Corporation made an official offer to buy the personal computer and printer maker HP on November 5. According to the information, Xerox, which manufactures print and digital products, decided to buy the HP. The company operates around the world more precisely in 160 countries. This news had a positive impact on HP’s shares.
Xerox made a cash-and-stock offer for HP. The board of directors discussed the possibility of this deal on Tuesday.
This offer comes at a time when both companies are trying to reduce the costs. As a result, this deal companies will be able to save more than $2 billion. It is important to mention that in October 2019, HP made an announcement regarding its plans. The computer and printer maker said that it would cut the number of employees between 7,000 and 9,000 by the end of fiscal 2022.
This decision is part of a restructuring plan, which should help the company to reduce the cost by $1 billion a year. HP employs 55,000 people across the world.
It is an interesting fact that Xerox’s market cap is $8.05 billion, whereas HP’s market value is $27.27 billion.
On Wednesday, HP’s shares increased by more than 6% after a possible deal with Xerox. For the last couple of days, Xerox is active on the market. On November 5, Xerox stated that it would sell its 25% stake in Fuji Xerox, which is a joint venture with Japan’s Fujifilm. The price of the 25% stake in Fuji Xerox is $2.3 billion.
U.S. stocks on Wednesday
The concerns about U.S.-China trade talks affected the U.S. stocks. The Dow Jones Industrial Average declined by 7 points to 27,492.56. Another major U.S. stock index, which is the S&P 500 barely changed and closing at 3076.77.
The Nasdaq Composite fell by nearly 0.3%. Tech giants such as Apple, Microsoft failed to meet the expectations. As a result, this affected the Nasdaq Composite.