According to a recent Wall Street Journal report, Xerox is considering buying HP's printer and personal computer business.
According to a person close to the matter with the WSJ, Xerox's board discussed the possibility on Tuesday. Furthermore, the source added, Xerox received an unofficial funding commitment from a major bank.
As a manufacturer of printers and copiers, Xerox currently has a market capitalization of about 8.05 billion USD, less than one third of HP's 27.7 billion USD market value.
Meanwhile, WSJ sources said that both companies are seeking ways to cut costs and the merging of these two companies will save more than $ 2 billion in costs each year.
Last month, HP said it would cut between 7,000 and 9,000 jobs by the end of fiscal 2022 as part of a broad restructuring plan that is expected to save about $ 1 billion per year. These jobs are equivalent to nearly 16% of the company's workforce with 55,000 employees globally.
HP was created after Hewlett Packard separated its business product segment – Hewlett Packard Enterprise, specializing in data storage devices, servers and other related services, into another company.
Currently, neither a HP spokesperson nor a Xerox representative has made any comment on the incident.
Refer to CNBC