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Xerox–Lexmark Deal Approved by Key Markets Amid Ongoing Scrutiny.
Xerox’s $1.5 billion acquisition of Lexmark International has won antitrust clearance in the United States, United Kingdom, and Canada, marking a significant step forward for the transaction. However, despite regulatory progress, the deal continues to face scrutiny over concerns ranging from market consolidation to national security risks tied to its geopolitical underpinnings.
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The acquisition, announced in December 2024, will see Xerox take over Lexmark from Chinese-controlled Ninestar Corporation, along with PAG Asia Capital and Shanghai Shouda Investment Centre. The two companies are long-standing competitors in the printing and imaging space, and the deal is positioned as a move to solidify Xerox’s standing in the hybrid-work era by expanding its print and managed services business globally.
In a recent U.S. securities filing, Xerox confirmed it had secured approval under the Hart-Scott-Rodino Act, as well as antitrust clearance in the UK and Canada. It also reported that most major EU countries had signed off under their foreign direct investment frameworks.
But a full investigation by the European Commission remains underway, with a decision due by June 17. The notification was submitted in full form, meaning the Commission will conduct a detailed market review, gathering input from customers and competitors. This suggests regulators are examining deeper implications of the merger—possibly tied to competition risks and broader strategic concerns.
At the heart of the controversy is Lexmark’s current owner, Ninestar Corporation, which was sanctioned by the U.S. government in 2023 over alleged involvement in human rights abuses in China’s Xinjiang region. Critics worry that merging two companies involved in sensitive document and imaging technologies could expose clients—including governments and large enterprises—to data privacy and security vulnerabilities, especially if Chinese authorities retain indirect influence over the combined entity.
“This isn’t just about printers anymore,” warned a former U.S. trade official. “It’s about control over information infrastructure in an era where digital security and geopolitical power are tightly intertwined.”
Xerox, based in Connecticut, has dismissed these concerns, emphasizing the strategic value of the acquisition. CEO Steve Bandrowczak said the deal brings together “two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry.” The merged company will serve over 200,000 clients across 170 countries and operate 125 manufacturing and distribution facilities in 16 nations.
Despite lingering concerns, Xerox appears confident. The company said it has already secured 32% of the necessary votes for approval from Ninestar shareholders and expects the remaining votes—and Chinese securities regulatory approval—to follow in the coming months. The deal is expected to close in the third quarter of 2025.
Still, industry watchers remain cautious. The global printing market is contracting, and consolidation could limit competition. With geopolitical tensions running high and regulatory agencies under pressure to safeguard both economic interests and national security, the Xerox–Lexmark deal may yet encounter turbulence before reaching the finish line.
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