Samsung Corp. is pressing a legal fight in India against distributor Ingram Micro Inc. of Santa Ana.
According to a news source in India, computer and consumer electronics maker Samsung has sought to block Ingram Micro’s acquisition of Australia’s Tech Pacific Ltd.,even though the deal closed two years ago.
In India, civil cases can continue after a deal has wrapped up.
Earlier this year, a court in Mumbai gave the green light to Ingram for the deal. But Samsung appealed the case to another court in Bangalore earlier this fall.
Details of the case aren’t fully known.
Samsung has sought to block Ingram’s integration of Tech Pacific in India but apparently nowhere else.
A story on Indian technology news Web site DQ Channels quoted a Samsung source as saying “We are opposing the merger of Ingram with Tech Pacific in the Bangalore High Court, because as a creditor of both the companies we feel that the merger will not be in the best interest of the creditors.”
An Ingram spokesman said all unsecured creditors with the exception of Samsung approved the acquisition.
“We currently do not expect a material impact on our ongoing financial position, operating results or cash flows,” Ingram spokesman Chris Kelly said of the lawsuit.
According to a document with the High Court of Karnataka in Bangalore, Samsung India Electronics Pvt. Ltd. appealed the case against Ingram Micro India Pvt. Ltd. on Sept. 20.
At last check the court listed the case as “pending for admission.”
The Tech Pacific acquisition was one of Ingram’s biggest corporate moves of the past couple of years.
Before the $530 million deal in late 2004, Ingram had yearly Asian sales of about $2.2 billion. Tech Pacific did some $2.5 billion each year in the region.
The buy gave Ingram the largest global operation in its industry, putting it well ahead of rival Clearwater, Fla.-based Tech Data Corp., which has little presence in Asia.
Ingram also serves Europe, Latin America and North America.
Ingram has kept many Tech Pacific managers and operations in place, including in India, Australia, New Zealand, Malaysia and Hong Kong. Executives from Ingram took over just Singapore and Thailand.
Keeping local management helped Ingram retain customers that otherwise might have bolted after the acquisition, according to the company.
Ingram has won new business in the region.
Milpitas-based SanDisk Corp., one of the largest flash memory makers, recently said it is making a big move into India and will tap Ingram, along with India’s Rashi Peripherals Pvt. Ltd., to distribute its products.
In the second quarter, Ingram Micro’s Asia-Pacific sales were $1.3 billion, up 12% from a year earlier. Asia Pacific represents about 18% of sales.
The region’s profitability held steady, a key for Ingram, which makes about a penny on every dollar of revenue.
Asia-Pacific operating income was $16.1 million, or 1.2% of sales in the quarter.
