NSN Motorola merger delayed without approval from mofcom
Source: Internet
Author: User
KeywordsMotorola
The acquisition of Motorola Wireless assets has entered the third phase of the Chinese government's Ministry of Commerce's Antitrust bureau review, but trading time could not be completed in the first quarter of this year, said NSN, a telecoms equipment maker, Nokia Siemens Communications. Nokia Siemens Communications remains committed to completing the deal. There is currently no expectation of the time it will take to complete the transaction. "NSN said. Previously, NSN had delayed the completion of the deal from late last year to the first quarter of this year, after failing to approve the Chinese Ministry of Commerce, the second time. On July 19, 2010, NSN announced a $1.2 billion purchase of Motorola's wireless network assets, which have been approved by 8 antitrust regulators in 9 countries and regions, including the United States, the European Union and Brazil. The project is "stuck" in the hands of China's Ministry of Commerce. Although Motorola wireless accounts for only 3% of the global mobile network market, it has partnerships with more than 50 telecom operators, including China Mobile, Verizon Wireless and Vodafone. NSN hopes to expand the scale of the competition with Ericsson, Huawei and other rivals to compete for the world's top three position. Zhiqiang, president of NSN China, has said that once the deal comes into effect, Motorola's domestic staff will join the NSN team. Of the roughly 7,500 employees involved in the integrated Motorola World, more than 2000 people from China. Behind the current situation, there is a "tangled" background. Huawei, China's largest telecoms equipment maker, was also involved in the acquisition of Motorola assets, but failed to do so. After NSN announced the takeover, Motorola immediately launched a lawsuit against Huawei, saying it had orchestrated more than 10 years of careful planning to steal its trade secrets. Huawei launched a "counterattack" in early 2011, suing the US for delaying NSN's takeover of Motorola's wireless network, pending the resolution of intellectual property disputes. "The lawsuit is aimed at preventing Motorola from illegally transferring Huawei's proprietary intellectual property rights to NSN." Huawei insiders told reporters that Huawei is taking legal action as NSN tries to complete a 1.2 billion dollar takeover deal on Motorola's wireless network business. In fact, since 2000, Huawei and Motorola have been working closely together, involving wireless access, the core network and other areas, Motorola's own brand to customers to resell Huawei Wireless network products. Huawei has been actively communicating with Motorola since July 2010 when NSN announced its acquisition of Motorola Wireless network business assets, to ensure that Motorola does not transfer Huawei's intellectual property and trade secrets to NSN, the company said. Just last month, the United States Illinois State North District Court ruled, issued a preliminary restraining order, not only to prohibit Motorola to transfer Huawei to NSN confidential information, but also increased demand for Motorola to hire an independent third party to carry out the security of Huawei Confidential information removal inspection, And to allow Huawei to maintain the NSN of Motorola Equipment service records audit and other requirements. Huawei says the US lawThe court's ruling on the case is not only the foundation of Huawei's long-standing business partnership with US companies, but also the firm's confidence that it will continue to invest more in the US in the future. According to Huawei's data, it currently has 13 offices and 8 research and development centers in North America, with more than 1000 employees in the United States, and a further increase in the number of U.S. employees in 2011. But for now, Huawei faces barriers to entry into the US market. Last month, Huawei had to withdraw its application for a 2 million-dollar takeover of a 3Leaf company-specific asset deal. Because a number of U.S. lawmakers have claimed that Huawei's takeover will pose a threat to America's computer networks. "It never occurred to me that 2 million dollars would be treated like this for a small deal that doesn't even have one out of 10,000 of our income." Huawei insiders said to reporters.
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