Ingram Micro's acquisition by Chinese giant, Tianjin Tianhai, for US$6 billion will change the face of distribution worldwide.
Distribution Central CEO, Nick Verykios, is in the US and was about to jump on a plane when ARN caught up with him: "It opens a thousand questions for distribution and for vendors. Like who are going to be the powerbrokers?
"What does it mean for vendors? What does it mean for global distribution.
"There are issues concerning vendors and trade in China. It's going to be a political issue as well. It's going to be awesome."
Tianjin Tianhai will acquire Ingram Micro for $US38.90 per share in an all-cash transaction. Upon close of the merger, 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 and the largest stockholder of Tianjin Tianhai.
The transaction, which has been unanimously approved by both Ingram Micro's and Tianjin Tianhai's boards of directors, represents a premium of approximately 39 per cent over the average closing share price of Ingram Micro for the 30 trading days ended February 16, 2016.
Following the close of the transaction, which is expected in the second half of 2016, Ingram Micro will operate as a subsidiary of Tianjin Tianhai, consolidated under HNA Group, the largest stockholder of Tianjin Tianhai (via HNA Group's subsidiaries).
More to follow
Sign up for CIO Asia eNewsletters.