What’s new: Huawei Technologies Co. Ltd. plans to team up with several local firms to wholly acquire its venture with Nokia Oyj, a buyout that would see the Finnish handset-maker finally exit the company after a previous attempt to sell its stake failed due to strong opposition from its Chinese partner.
Nokia owns 51% of the wireless communications joint venture (JV), Beijing-based TD Tech, and Huawei owns the rest.
The Chinese smartphone giant is buying the stake with a consortium that consists of two state-owned companies and a private equity firm, according to an entry released Friday by the State Administration for Market Regulation.
Antitrust officials are seeking public comment on the deal through Jan. 28. The entry did not detail the cost of the buyout or how much equity each of the new investors will hold.
The background: TD Tech was initially founded in 2005 by Huawei and German tech conglomerate Siemens AG. Siemens later sold part of its stake to Nokia and exited fully in 2013.
But Nokia has been trying to exit the JV in recent years. The Finnish firm was set to sell its entire stake in TD Tech’s parent company of the same name to New East New Materials Co. Ltd. (603110.SH), according to a Shanghai Stock Exchange filing by the ink-maker in April.
Huawei supported the sale but strongly opposed Nokia’s choice of purchaser, threatening to take measures that included stopping licensing technology to TD Tech if New East New Materials became its new partner. The deal ultimately fell through.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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