Samsung’s printer business sale to HP approved by China
Samsung announced in September last year that it had decided to sell it printer business to HP for $1.05 billion. Samsung’s printer business sale was part of the company’s restructuring efforts. It wanted to free up cash and focus more on its core businesses. This decision freed up about a billion dollars for the company while also allowing HP to further increase its position as a market leader.
The company created a separate entity after the announcement called S-Printing Solution. It is going to operate the printer business until the deal closes. The subsidiary will then be formally transferred to HP.
Samsung’s Printer Business Sale
The two companies are nearly there now. China has given its approval but some restrictions have been placed on HP. They’re meant to keep HP from monopolizing the market and engaging in unfair practices.
China’s Ministry of Commerce has said that HP should sell its A4 laser printers under “fair and reasonable terms” in the country. It also wants the company to report pricing information and other data to the ministry every six months.
HP has also been forbidden from acquiring stakes in other A4 printer manufacturers in China. It can’t even make a minority equity investment.
While Samsung has left the printer business, the deal does give it the right to sell all HP inkjet products under its own brand in South Korea.