Uncertainties arose on the acquisition of the wireless division of Motorola by Nokia Siemens Networks, as the Ministry of Commerce of the People’s Republic of China decided to extend the time limit to approve the transaction by 60 days. This indicates that the commercial authority of China has become more flexible and wiser in handling acquisition-related issues under the WTO framework, and that Chinese companies have become more mature when they go to overseas markets, an insider told our journalist.
In July last year, NSN announced that it would purchase most of the wireless infrastructures of Motorola, which transaction requires approvals from nine countries. Except China, the other eight countries have given their approvals. Since its application in China is obstructed, NSN will have to postpone its plan to obtain the Chinese approval in the first quarter this year. No definite schedule has been drawn up yet for the acquisition, said NSN.
The main cause of the postponement lies in Huawei, a Chinese company which has numerous IP rights involved in the wireless assets to be purchased by NSN. Huawei brought an action in the United States and won it in February this year. As reported by Agence France-Presse, NSN will see its global ranking rise to No. 2 from the acquisition.