China reshuffle to go ahead as planned

3 Jun 2008

China Unicom officials have confirmed that the company will merge with fixed line operator China Netcom in a share swap valued at CNY391 billion (USD56 billion). Meanwhile, China Telecom has officially revealed that it will acquire Unicom’s CDMA network for CNY110 billion, and stated that it expects the hitherto struggling CDMA business to become profitable by 2012. Both transactions are expected to be completed by the end of the 2008. Shareholders of Unicom and Netcom are to meet in September to vote on the deal. Regulatory approval is also required, though this is expected to be a formality.

China, China Netcom, China Telecom Corporation, China Unicom