China's Commerce Ministry Conditionally Approves HP's Purchase of Samsung Printer Division
Xu Wei
DATE:  Oct 09 2017
/ SOURCE:  Yicai
China's Commerce Ministry Conditionally Approves HP's Purchase of Samsung Printer Division China's Commerce Ministry Conditionally Approves HP's Purchase of Samsung Printer Division

(Yicai Global) Oct. 9 -- China's Ministry of Commerce approved Hewlett-Packard Co.'s [NYSE:HPQ] acquisition of Samsung Electronic Co.'s [KRX:005930] printer division under certain conditions, the ministry said online on Oct. 5.

The commerce ministry required Hewlett-Packard, or HP, to continue to sell A4 laser printer products with fair and reasonable supply conditions, and submit pricing information and other data to the ministry's Anti-Monopoly Bureau every six months. The firm may also not buy shares in other A4 laser printer companies in China, even if it is a minority stake, and cannot implement technical measures or upgrade firmware which may affect third-party accessories compatibility with Samsung's A4 laser printers sold in China.

HP may also not falsely advertise to potential Chinese customers or claim third-party equipment is not compatible with its A4 laser printers. It can also not promote tie-in sales or engage in other unreasonable business practices, the ministry added.

These conditions will remain valid for five years and be terminated automatically upon expiration of the term, the notice said.

US-based HP proposed to buy Korean tech firm Samsung's printer division for USD105 million in September last year. The deal marks the American's firm biggest transaction in the printer business.

Follow Yicai Global on
Keywords:   HP,Samsung Electronics,US,South Korea,M&As,Ministry of Commerce