China Netcom Group has confirmed that its shareholders have given the go-ahead to its merger with China Unicom. The merger will be effective from 15 October, provided a Hong Kong court hearing scheduled for the day before clears the deal. China Netcom will become a wholly-owned subsidiary of China Unicom after the merger and the enlarged company will be renamed China Unicom (Hong Kong) Co Ltd. Chang Xiaobing, current chairman of China Unicom, will be chairman of the enlarged company.
Yesterday, shareholders of China Unicom approved the sale of its Code Division Multiple Access (CDMA) operations to China Telecom for RMB 43.8 billion (USD6.41 billion). After the sale, China Unicom will have a single GSM-based mobile network and will become a full-service operator by inheriting China Netcom’s fixed line business.