HP’s US$1 Billion Acquisition Proposition Approved

Samsung’s shareholders approved the sale of their printing section to HP, according to The Investor by The Korean Herald.

The news that Samsung considered selling the printer business to HP for US$1.8 billion has caught many by surprise. HP stated afterwards that it would acquire Samsung’s printer business for US$1.05 billon. Along with the report of Korean media saying that the shareholders of Samsung has approved the deal, Samsung released its third quarter results.

The OEM’s financial report says its revenue for the 3Q2016 (ended September 30, 2016) has declined KRW 3.87 trillion (US$3.38 billion) YOY to KRW 47.82 trillion (US$41.77 billion). The operating profit reduced KRW 2.19 trillion (US$1.91 billion) to KRW 5.20 trillion (US$4.54 billion) comparing to the same period last year.

The company attributed the earnings decline for the IT & Mobile Communications division to the Galaxy Note 7 discontinuation.

In terms of HP’s pending acquisition of Samsung’s printer business, the giant’s partner Canon commented it expects negligible impact on its business. Canon Inc. Executive Vice President & CFO Toshizo Tanaka said both HP and Canon “believe that this will not change our partnership in the laser printer space and that mutual growth can be achieved.”

“Although we need to continue monitoring the situation, this market has high barriers to entry. As such, the possibility of this M&A suddenly becoming a threat is unlikely,” he added.

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