Avnet snaps up rival

Creates new giant for the chips 'n' bits channel

Chip and components distributor Avnet is to buy one of its rivals, Marshall Industries, in a deal worth some $830 million. The purchase will be a combined cash, stock and assumed debt deal, with the resulting company dominating the North American components channel. Each Marshall share will be worth $39 or can be swapped for 0.81569 of an Avnet share. This is a premium of 94 per cent on Marshall's closing price last Friday. According to US newswires, the resultant company will have an annual turnover of around $8 billion. ®

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