While Xerox focuses on large printers and copy machines meant for commercial usage, HP sells mainly smaller printers and printing supplies alongside its PCs, making it one of the largest consumer hardware vendors in the country.
Fujifilm said Tuesday it will make Fuji Xerox a wholly owned subsidiary, buying Xerox's stake in the firm and ending a 57-year-old partnership between the Japanese and USA companies. However, there's no certainty as to whether the bid will move forward or if it would succeed given that HP is three times the size of Xerox, the report stated.
According to the Journal, the two businesses could save about $2 billion through layoffs and other synergies.
HP has been struggling with its printer business segment recently. Both companies have been cutting costs for years as a variety of forces, from lower demand for printing and copying to competition from more successful PC makers such as Dell Technologies Inc., have left them with slow-growing or declining lines of business.
Through the looking glass: A merger between the two could make a lot of sense.
The reported news come a year after Xerox abandoned a controversial $6.1bn deal to merge with Fujifilm last year, after investors Carl Icahn and Darwin Deason lobbied against the agreement, claiming that it undervalued the firm. CEO Dion Weisler stepped down from his helm in August to tend to an unspecified family health matter. HP has improved somewhat of late, reporting third-quarter financial results that topped expectations, but its stock is down 10% so far this year.