Xerox has rejected a bid to merge its document business with the world’s biggest printer RR Donnelley, following worldwide speculation about a proposed partnership between the two industry giants.

The anticipated merger was pegged as a major disruption to the global printing industry as tensions between press suppliers and printers grow with suppliers forging businesses to directly compete with their own customers.

According to US reports, the Xerox advisory board reviewed RR Donnelley’s proposal before ultimately telling the Chicago-based printing giant it was not interested.

Merger talks between Xerox and RR Donnelley began as Xerox revealed it was set to split into two separate companies – its $11bn document technology business slated to remain as Xerox and its $7bn business processing outsourcing business rebranded as Conduent.

ProPrint reported last week the proposed merger reflected an industry trend in Australia which sees digital printers supplied by companies which own businesses that printers are struggling to compete against.

Xerox has refused to publically comment on the matter and RR Donnelley could not be reached for a comment.

RR Donnelley posted sales of $US11.6bn last year and its shares jumped 12 per cent following news of its potential sale to Xerox. It also revealed plans to split into three publicly traded companies, a bid that would have been heavily negated had Xerox acquired it.

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