China Mobile Group acquires fixed-line peer China Railcom

It seems consolidation of the Chinese telecom industry has started with China Mobile (NYSE: CHL) Group (China Mobile’s parent company) announcing that it is acquiring nationwide fixed-line peer China Railcom. And while the company will continue to operate as an independent business, China Mobile’s Chairman Wang Jianzhou will head the combined company.

Naturally, as soon as word about acquisition has hit streets, shares of China Unicom — China’s other mobile operators — jumped 11-12 percent before they were suspended from trade. Additionally, shares of fixed-line operators China Netcom and China Telecom rose 12 and 7 percent, respectively.

According to media reports, future deals are imminent, and are expected to include the merger of China Netcom and China Unicom.

[Via: Reuters]