China Unicom merge with China Netcom in a $56.3 billion deal
By Dusan Belic on Tuesday, June 3rd, 2008 at 10:51 AM PST In General
Consolidation of Chinese telecoms market is well underway. A week ago we reported that China Mobile Group is acquiring China Railcom, and now China Unicom is merging with fixed-line player China Netcom, while at the same time spinning off its CDMA business to China Telecom.
The two companies are merging in a share swap deal valued at US$56.3 billion, which, as a result, will see China Netcom delisted and will become a wholly-owned unit of China Unicom. Meanwhile, China Unicom will receive 110 billion yuan (around $15.9 billion) for the sale of its CDMA operations, but will keep the GSM business. Also worth noting is that the deal will mark China Telecom’s first entry into the Chinese mobile market.
Shares in China Unicom, Netcom and Telecom have been suspended since May 23rd, following the announcement of the restructuring plan.
[Via: Unstrung]
