SEOUL,KOREA3 July 2017 - 2:00pm
Cho Jin-young
Samsung Electronics’ printer business will disappear in history in 33 years after the launch. The unit will be merged with U.S.-based HP Inc. as early as August as the follow-up measure of Samsung’s decision to sell its printing solution business division last year. However, HP will still sell printers in Korea under Samsung brand names from the second half of this year.
According to industry sources on July 2, Samsung Electronics sold its printing solution business to HP at the cost of US$1.05 billion (1.12 trillion won) in September last year. So, it will complete the merger process with HP in August or within the second half of this year at the latest. HP will completely acquire a 100 percent share and overseas asset of S-Printing Solution Corp., which was spun off from Samsung Electronics, when merger screening procedures are completed.
Samsung Electronics established subsidiary S-Printing Solution and appointed Kim Ki-ho as president last November by spinning off its printing solution unit in November last year to sell off the division. HP is currently waiting to get approval for the merger in each country to sell Samsung printers under HP brand names and supply products with original equipment manufacturer (OEM) systems after merging with Samsung Electronics’ printing business unit. The procedure will be completed as early as August and S-Printing Solution is merged with HP upon approval.
An official from S-Printing Solution said, “S-Printing Solution will be merged with HP and then incorporated into HP Inc. later. HP is now under examination for the merger in each country so it can acquire Samsung’s unit earlier than expected when the procedure goes well.”
When the merger procedure is completed, Samsung will completely pull out of printer manufacturing business. However, the company will sell HP printers through the OCM supply under Samsung brand names in South Korea. HP asked for it because Samsung has strong brand awareness in the domestic market. Current 6,000 employees of S-Printing Solution will be employed by HP after the merger. However, they will still work at the existing offices in Suwon. All the employees and executives are promised an employment succession and employment guarantee of five years.
Once the merger is completed, HP will be able to solidify its dominance in the printer market further. As of the first quarter, HP had a 36.9 percent share of the global printer market. It will take up more than 41 percent of the market share after merging with Samsung’s unit with a 4.2 percent share, over twice as much as Canon’s.
An official from the industry said, “Due to the economic recession, the printer and all-in-one printer market has been struggling in the past two years. There are many competitors and limits in the market but HP, the No.1 company in the global printer market, will maximize a synergy through the merger with Samsung’s printer business unit.”
