The EU clears the way for Xerox to absorb Lexmark in a move that will end the company’s independence. The brand will live on, but is the business done? Another chapter in the sector’s steady consolidation – and another win for Ninestar.
The European Commission has approved Xerox Holdings Corporation’s acquisition of Lexmark International II, LLC under the EU Merger Regulation.
The deal will give Xerox sole control of Lexmark, once a division of IBM and a key OEM player in the office print sector for many years. The two companies, both based in the United States, have global footprints and overlapping activities in the market for branded regular format printers.
Following a standard Phase I review, the Commission concluded the deal would not harm competition. “There are sufficient alternative suppliers in the markets where the activities of Xerox and Lexmark overlap,” the Commission stated.
No remedies or commitments were required. The decision reflects a print market where even major brand moves no longer trigger serious antitrust concerns, and where market fragmentation continues to dilute competitive risks.
For the aftermarket, the move raises familiar concerns. Both Xerox and Lexmark have taken strong positions on IP protection and have used firmware updates to restrict the use of remanufactured and third-party cartridges. A unified approach could spell more trouble for the independent reuse sector.
But is the real story that this is the end of Lexmark as an independent business? While the brand may continue, the company behind it is likely to disappear into Xerox’s structure, and behind them, Ninestar still looms large.
The Chinese group acquired Lexmark in 2016 and has now divested the hardware and software business to Xerox. While full details remain undisclosed, Ninestar may retain or negotiate rights to access Lexmark’s IP, which could support ongoing component development.
Editorial comment: Another OEM company is set to disappear. Lexmark will become a brand, not a business. Xerox will gain market share, but the real winner may be Ninestar, which will divest a legacy asset while possibly having access to the IP engine that powered it.
