[photopress:Huawei.jpg,full,alignright]China’s top telecoms equipment maker Huawei Technologies has agreed to sell off its 49 percent stake in a joint venture with U.S.-based 3Com for $882 million.
The deal, which requires Chinese Government approval, could give 3Com full ownership of H3C. The Hong Kong-headquartered venture mainly operates in Hangzhou, the capital of East China’s Zhejiang Province.
Following an agreement between the two sides, 3Com, which makes communications network equipment and software, launched a bid to buy Huawei’s stake in H3C on November 15. Huawei then made a counteroffer to buy 3Com’s stake in H3C, possibly to ease up the buyout price.
H3C was established in 2003. Proceedings from the sale of its stake in H3C could help Huawei finance its core businesses, especially mobile telecoms.
Huawei Senior Vice-President Guo Ping, said, ‘The divestment will further enable Huawei to focus on its core business, strengthening our leadership of the fixed and mobile convergence solutions market.’
The suggestion has been made that H3C has become increasingly irrelevant to Huawei’s core business.
Source: China Daily