The Shanghai Stock Exchange has delayed the US$6 billion acquisition of Ingram Micro by Chinese investment firm Tianjin Tianhai.
According to the Wall Street Journal, the exchange sent a letter to Tianjin Tianhai asking it to clarify the terms of the deal and how the firm will fund the acquisition. As a result, Tianjin Tianhai has delayed its shareholder meeting to approve the acquisition until 29 July.
The exchange also asked for details about any post-deal exit for a Chinese co-investor or any other risks around regulatory approval.
Ingram has submitted the acquisition proposal to the Committee on Foreign Investment in the United States (CFIUS), reported WSJ. The committee is responsible for monitoring foreign acquisitions that could pose a threat to US national security.
The distributor previously said it didn't expect to submit the deal to the CFIUS. If the deal is blocked, Tianjin Tianhai's parent company HNA would have to pay Ingram a termination fee up to US$400 million.
The two companies announced the acquisition in February and received unanimous support from both boards. Ingram global president and chief operating officer Paul Read will leave the company in September.