Story image

Ingram Micro US$6 billion acquisition hits speed bump

25 Jul 16

Question marks have been thrown over Tianjin Tianhai’s US$6 billion acquisition of Ingram Micro, with the Shanghai Stock Exchange reportedly requesting more details about the deal.

The Wall Street Journal says the Shanghai Exchange has sent Tianjin Tianhai a letter asking for more details, including terms of the deal and how the acquisition will be funded and an explanation as to why Ingram Micro’s profit margins have been lower than those for its key competitors in recent years and how the deal will impact on its credit rating.

Tianjin Tianhai Investment has postponed a shareholder meeting to approve the acquisition until July 29.

In an announcement to investors the day after the WSJ story, Ingram Micro said after consultation with the Committee on Foreign Investment in the United States (CIFUS), it and Tianjin Tianhai had decided to submit a joint voluntary notice to the committee, which will be filed ‘in due course’.

CIFUS reviews the national security implications of foreign investments in United States’ companies.

“The companies continue to expect the transaction to close in the second half of 2015 as previously announced, whereby Ingram Micro will become a part of HNA Group, a Hainan-based Fortune Global 500 enterprise group and a leader in aviation, tourism and logistics, which is the largest stockholder of Tianjin Tianhai,” Ingram Micro says.

The distributor says it is making ‘steady’ progress in receiving the required competition authority approvals.

In June the deal received early termination of the 30-day waiting period under the United States Federal Trade Commission and Antitrust Division’s antitrust act.

Ingram Micro says it has also received antitrust authority approval fom the Ministry of Commerce People’s Republic of China and approvals from antitrust authorities in Brazil, Canada, India, Mexico, South Africa and Turkey.

In June Ingram Micro shareholders overwhelmingly voted in favour of the deal, first announced back in February. However, the deal hasn’t been completely supported, with a class action suit filed by a shareholder – something the WSJ says Tianjin Tianhai has also been questioned about by the Shanghai Exchange.

The deal offers Ingram Micro a strong presence in China and provides it with complementary logistics capabilities.

Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.
Half of companies unable to detect IoT device breaches
A Gemalto study also shows that the of blockchain technology to help secure IoT data, services and devices has doubled in a year.
Will 2019 be the year of network evolution?
An A10 Networks exec talks 5G, software-defined networks, and the continuing evolution needed for a modern cloud environment.
Stepping up to sell security services in A/NZ
WatchGuard Technologies A/NZ regional director gives his top tips on how to make a move into the increasingly lucrative cybersecurity services market.
IDC: Relevance is combining strategy, creativity and IT services
IDC reveals the Top 10 Asia/Pacific predictions to impact IT and business services sourcing in 2019 and beyond.
How IIoT is creating opportunities for RFID companies
The growing demands for automation and digitisation are creating considerable growth opportunities for RFID vendors.