Mobile operator China Unicom has announced plans to acquire the fixed-line business from its parent group China Netcom for CNY 6.43billion ($940m) to expand its presence in southern China.
Unicom will acquire Netcom’s fixed-line and broadband internet business across 21 provinces in southern China as well as its local access telephone business in Tianjin. It will also acquire Netcom’s backbone transmission assets in Northern China and a 100% equity interest in Unicom Xingye, CITC, and New Guoxin.
The company’s number of fixed-line and broadband subscribers is expected to increase from 130 million to reach over 140 million as a result of the deal.
Chang Xiaobing, chairman and chief executive at China Unicom, said: The proposed acquisitions are expected to further strengthen China Unicom’s capability of providing full spectrum of telecommunications services across all regions in mainland China, and lay a solid foundation for the implementation of broadband-mobile integration strategy and the development of 3G business.