NOKIANEWS - News of the Nokia

Will Huawei and its partners buy Nokia's stake in the much-hyped TD Tech joint venture?

21. 01. 2024 Sunday / By: Robert Denes / Business / Exact time: BST / Print this page

In a report published by China's market authority on Friday, Huawei and its partner plan to acquire 100 percent of the shares of TD Tech, a joint venture between Huawei and Nokia established in 2005. According to the disclosed details of the deal, Huawei and Chengdu Gaoxin Investment Group, as well as other players, are jointly planning to acquire 100 percent of TD Tech's shares. TD Tech is primarily focused on the research, development and marketing of industrial customer communication solutions.

Before the transaction, Huawei and Nokia indirectly owned a total of 100 percent of the company's shares and jointly managed its operations. After the transaction is completed, Huawei, Chengdu Gaoxin Investment Group, Chengdu Gaoxin Collection Technology Co., Ltd. and Huage Venture Investment Management (Beijing) Co., Ltd. will own 100 percent of TD Tech's shares through a consortium they jointly established. , and jointly manage the company.

Although Nokia controlled TD Tech, TD Tech sold Huawei phones in China with 5G connectivity, bypassing US restrictions on Huawei. Last spring, Nokia announced that it would give up its stake in the joint venture. In the autumn, Nokia announced that it would withdraw its stake from the sale to the Chinese company New Oriental New Materials. At that time, the price of the transaction would have been approximately EUR 283 million.

Nokia unilaterally pulled out of the business, and New East New Materials was not too happy about it. Huawei was not initially excited about the business transaction, and the company would not have had the opportunity to continue doing business with the prospective buyer in question. In December 2023, Nokia and New East New Materials announced that they had signed a settlement agreement to cancel the transaction.

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