July 15, 2016
The Recycler reported earlier this week that the OEM was “in talks” to acquire the firm, though both companies “still ha[d] significant issues to negotiate and a deal [was] not imminent”, according to a source. The rumoured plan had been for Xerox to acquire RR Donnelley “and then merge parts of it within the two newly-created companies” the OEM is going to split into before the end of the year.
With Xerox planning the split into Conduent and Xerox – for business process optimisation and hardware respectively – Reuters added at the time that the OEM “had been trying to turn itself around, shifting focus to software and services”. Corporate customers have been cutting “printing costs and consumers [have] moved to mobile devices”, while RR Donnelly also announced plans last year “to split into three publicly-traded companies”, though it has “not yet completed” this.
However, Reuters and Wall Street Journal have now reported that Xerox rejected the merger because RR Donnelley proposed “that its executives take control of the combined operations, and sought several hundred million dollars in new cost cuts”. The “significant issues to negotiate” from the start had meant that “a deal was not imminent”, ahead of the latest announcement.
Reuters added that Xerox has “drawn some interest in potential deals” since announcing it would split, and neither the OEM nor RR Donnelley were prepared to comment.
Categories : City News