Huawei considering the purchase of Motorola’s network business
Huawei, who has the intent to purchase one business department of Motorola, is negotiating with the ministry of the United States to mitigate U.S government’s concerns about the ties between corporations and People’s Liberation Army, Financial Times reported on Sunday.
This transaction will lay a foundation for Huawei to purchase more assets in the market of U.S. With net profits of RMB 18.274 billion Yuan (2.676 billion dollars) last year, Huawei has enough capital to purchase other corporations.
Spokesman of Motorola China, Chen Lei said Motorola plans to split the mobile business and network service business into two separate listing companies in early 2011. Although Huawei is considered the potential buyer of Motorola’s business, the U.S government may place obstacle in the way. Huawei has established cooperation relationship with Motorola on the development of 3G technologies. Huawei U.S Senior Vice President of Marketing, Chen Zhaohui commented, “We are aware that some in U.S government have expressed their concerns on Huawei and we will try our best to mitigate their worries.”
Relevant person of Huawei said that Huawei, like other multinational corporations, would like to communicate with different institutions including government and “Huawei’s products and service will meet the customers’ purchase and safety standards.”
Huawei is considering signing “mitigation agreement with U.S government” expressing its sincerity to develop U.S market.
Shenzhen Post Elaine Contributes to the Story.
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