Ingram Micro has extended the completion date for its US$6 billion sale to Tianjin Tianhai to enable a United States review of the transaction’s security implications to be completed.
The deal must now be completed by November 13, 2016.
“The extension was made pursuant to the merger agreement among Ingram Micro, Tianjin Tianhai and GCL Acquisition, and will allow for completion of the previously announced review of the transaction by the Committee on Foreign Investment in the United States (CIFUS),” Ingram Micro says.
The distributor and Tianjin Tianhai announced in July that they had decided to submit a joint voluntary notice to CIFUS. The committeee reviews the national security implications of foreign investments in United States’ companies.
It had initially indicated that it didn’t believe the transaction would require CIFUS clearance.
The committee has blocked several proposed takeovers by Chinese companies in recent times, including the US$23 billion proposed acquisition of United States chip maker Micron by China Resources.
The deal, when completed, will see Ingram Micro becoming part of Hainan-based Fortune Global 500 aviation, tourism and logistics company HNA Group, which is the largest stockholder of Tianjin Tianhai.
Ingram Micro shareholders voted in favour of the deal in June, with the acquisition providing the distributor with a strong presence in China and complementary logistics capabilities.
Last month Ingram Micro announced its second quarter financials, reporting a 4% decrease, in US dollars, of sales to $10.1 billion, down from $10.6 billion a year earlier. Gross margin increased 88 basis points year on year to 7.10%. Non-GAAP operating income was $157 million, up from the 2015 Q2 figure of $151 million.