HP had announced the deal in September 2016. Now that it has got all necessary regulatory approvals, it expects to close the acquisition by December 31.
In a major development HP Inc has approved China’s regulatory approval for its $1.1 billion acquisition of Samsung Electronics’ printer business.
However, the go ahead has come with a certain baggage since China fears U.S. dominance in its domestic laser printer market.
HP had announced the acquisition in September 2016 eyeing the $55 billion computer printer market and had hoped to close the deal within a year, subject to regulatory approval.
China’s Ministry of Commerce has issued a statement saying the sale of A4 laser printers, by HP, in China should be done on “fair and reasonable” terms; HP will have to report the prices and related data of its A4 printers every six months to it.
In addition, HP is barred from buying any stakes in other A4 printer manufacturers in China even if they are a minority equity investment, reads the statement from China’s Ministry of Commerce.
Furthermore, HP must not adapt its printers to restrict compatibility with third-parties or claim in advertising that its printers are not compatible with other suppliers.
As per HP’s spokeswoman, the company expects to close the deal by the fourth quarter ending December 31. She declined to comment on the regulatory process.
Samsung was not immediately available for comment.
As part of the deal, HP is set to gain an intellectual property portfolio of more than 6,500 printing patents and nearly 1,300 researchers and engineers who have expertise in imaging electronics, laser printer technology and printer supplies.