UK equipment supplier Marconi has signed a mutual distribution deal with China’s Huawei Technologies. Under the terms of the deal Marconi will resell Huawei’s carrier-class data communications products under its own brand, whilst the Chinese company will resell its UK partner’s microwave radio services. The two companies are in ongoing discussions over several other unnamed joint ventures.
Earlier this month the South China Morning Post reported that Huawei was one of a number of Chinese companies considering a buyout of Marconi. Rumours of possible bids have been circulating ever since Marconi failed to secure vital contracts from UK incumbent BT last month. Both Chinese vendors are thought to be keen to expand their businesses in the western European telecoms markets.