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Finnish telecommunications equipment manufacturer has completed the full acquisition of its Chinese joint venture, marking the end of one of China’s earliest Sino-foreign telecom collaborations as a wholly owned foreign enterprise, according to a recent report. The company finalized the transfer of the remaining 50% stake from an industrial investment firm, making it the sole owner of the venture.
This acquisition will enable the company to streamline its ownership structure in China. The joint venture will continue to operate under the parent company’s brand, aligning with its global operational model and maintaining its commitment to serve Chinese customers.
The financial terms of the transaction were not disclosed. However, the previous owner listed its 50% share on the Beijing Equity Exchange at a valuation of ¥4.1 billion (approximately $582 million).
Originally established in 1984, the company was a joint effort between China Post and Telecommunications Corp. (now China Potevio) and Belgium’s Bell Telephone Manufacturing. Later, the Belgian company was acquired by France-based Alcatel, which merged into the parent company in 2015. Over time, the ownership structure included 50% held by a Chinese investor and a 50% plus one share stake by the telecom giant.
In 2024, the company and China Huaxin re-evaluated the ownership structure of the joint venture. After discussions, the telecom company exercised its call option to become the sole owner by purchasing China Huaxin’s 50% stake, as noted in its annual report for that year.
The joint venture mainly focuses on mobile communications, network infrastructure, and cloud services. During the first three quarters of this year, the company reported a net profit of ¥90.5 million ($12.8 million) and revenue of ¥4.6 billion. As of September 30, it held total assets valued at ¥11.6 billion ($1.6 billion).
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