Huawei considering acquiring Marconi

Huawei considering acquiring Marconi

China’s biggest maker of telecommunications equipment Huawei Technologies Co. is considering acquiring Britain’s Marconi Corp. PLC. If this happens, it would just be the latest example of a Chinese tech giant acquiring an international company. The deal can be worth as much as 560 million British pounds, or $1 billion as per the report released by Sunday Times of London.

The deal has a good possibility of taking place considering market analysts believe that Marconi cannot survive in this competitive market as an independent entity. This news also comes just days after state-controlled Chinese oil company CNOOC Ltd. gave up on its bid for the California-based oil and gas producer Unocal Corp. that deal was worth around USD 18.5 billion.

Chinese technology companies are working hard on creating a global brand value. Huawei has officially not released any comments on these market rumors until now. Marconi has unofficially put itself on sale after it lost out on a 10 billion pound contract to build a new network for British Telecom. BT happens to be THE biggest customer of the company based in Britain.

Huawei has been quite successful in their market and has expanded rapidly into civilian telecoms, selling low-cost equipment in other developing countries. India happens to be one of its most successful bases for operations. Marconi on its part has been one of the Britain’s industrial giants.