Nokia withdrew due to a failed acquisition, and Huawei had the last laugh!
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In April, a company called Eastermatic announced that it would buy a 51% stake in TD Tech from Nokia. If TD Tech is just an ordinary company, and most importantly, Huawei holds 49% of the shares, if it is really bought by Dongfang Materials, then it is very likely to jointly operate TD Tech with Huawei.
However, it was not so easy, and the merger ended in failure. Things took a new turn, Nokia pulled out of the race, and Huawei emerged as the ultimate winner.
The ins and outs of TD Tech's M&A.
After Huawei was sanctioned by the United States, the sales of the entire smart phone fell into a trough, from the fifth place in the country to the top ten in the world, to "others". Huawei can only rely on Qualcomm's Snapdragon 4 G chips to support its business, and at this time, a company called "TD Tech" got Huawei's license and launched many products very similar to Huawei.
Until this time, everyone found out that TD Tech is Huawei's smart choice, and Huawei also holds 49% of the shares, which is a very significant strategic layout for Huawei. Nokia also holds a 51% stake in TD Tech.
In April of this year, Oriental Raw Materials announced a project worth 21RMB 200 million agreement to purchase Nokia, a 51% stake in TD Tech. This incident caused a stir that year, and Huawei expressed its firm disagreement and said that it had no intention of entering into a joint venture with Dongda Building Materials.
The reason for this is also very clear, that is, because they only do raw materials and packaging, and there is no research on high-tech industries. TD Tech's merger fell through due to strong resistance from Huawei.
In December this year, Dongfang Building Materials issued another statement, saying that it had stopped the merger and acquisition of TD Tech Group and carried out a liquidation with Nokia, so far, the 22 billion merger and acquisition transaction was declared bankrupt. However, this is not the end of the competition, this time Nokia has also withdrawn from the competition.
Huawei is the winner.
When Huawei rejected Dongfangyuan's purchase of TD Tech, Huawei also expressed its hope that TD Tech would be unanimously recognized by major shareholders of strategic significance. It took more than half a year for him to appear. On February 19, the China Administration for Industry and Commerce released a news that Huawei and Chengdu High-tech Co., Ltd. and other senior executives had acquired TD Tech.
Upon completion of the acquisition, TD Tech will own 100% of TD Tech's shares, including Huawei's Chengdu Hi-Tech Group, Chengdu Hi-Tech *** and Huagai Venture Capital (Beijing).
The background of Chengdu High-tech Investment is the state-owned economic development bureau of Chengdu High-tech Zone, which uses the word "state-owned" as the core, making Huawei and TD Tech the real major shareholders.
TD Tech has gone from wanting to take advantage of the popularity of the Internet to becoming a state-owned enterprise, which is a completely different experience. Now, TD Tech has obtained Huawei's patent, and the power behind it is even greater, and the future of TD Tech will be better than before.
And Huawei's smartphone industry is also accelerating its recovery, and Kirin has also returned, and in the end Huawei won.
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