Technology distributor Ingram Micro said on July 21 that it would submit its pending USD 6 billion acquisition by Chinese conglomerate HNA's affiliated shipping company Tianjin Tianhai Investment for review by the Committee on Foreign Investment in the United States (CFIUS).
The announcement is a reversal for the company, as it had previously indicated it didn’t expect to go before CFIUS, which is tasked with reviewing deals for national security concerns.
Ingram, the Irvine, Calif.-based distributor of computer hardware, said today that it had decided to file for CFIUS review “after consultation” with CFIUS. The company said it and its buyer Tianjin Tianhai expect to file a notice with the committee “in due course.”
The announcement is the latest hurdle towards completion of the deal, which Ingram still expects to complete before the end of the year.
On July 15, the Shanghai Stock Exchange asked for more details about Tianjin Tainhai’s acquisition, causing the Chinese buyer to delay a shareholder meeting to approve the deal.
If the deal falls apart, Tianjin Tianhai parent HNA will pay Ingram a termination fee as high as USD 400 million. The fee totals 6.6% of the deal price and is more than double the traditional rate for such fees, an indication of a high degree of concern.
Read original article