Nokia Siemens Networks and Huawei to intense competition in the world’s second largest wireless equipment manufacturers, when the title, Noci yesterday suddenly announced a 12 billion acquisition of Motorola’s wireless network assets in the news, according to media reports, and Noci competition is Motorola’s wireless assets Huawei, Nokia Siemens Networks Huawei’s defeat means victory, and this long coveted Huawei North American market, no doubt, is a major blow.
Yesterday, both Noci or Huawei do not want to make a further response to this argument. Media, Huawei for this bid, had hired local experts in the United States to lobby the government, but until Nokia Siemens announced the acquisition of results, Huawei and Motorola did not formally recognize Huawei whether to participate in bidding, quotations, and ultimately why the exit.
Motorola has flown to North America, the assets involved in the integration Noci Zhang Zhiqiang, President Greater China, yesterday received the “First Financial Daily” in a telephone interview, he said, to income, Noci acquisition of Motorola’s wireless assets, to consolidate its global infrastructure facilities in the field of the status of the second-largest maker. According to 2009 income, Huawei revenue of 21.5 billion U.S. dollars, Noci 176 dollars, Huawei for the first time beyond the Noci, topped second place, but Noci has been for the caliber of other statistical data to prove they are still the second largest equipment manufacturers .
Motorola completed the acquisition of wireless assets, Noci’s total sales volume is expected to reach 17.6 billion +37 100 million U.S. dollars, which is 21.3 billion U.S. dollars, 21.5 billion U.S. dollars with Huawei comparable, but the acquisition needs to be completed by the end of 2010, not will affect the financial results of Nokia Siemens Networks in 2010, so in a short time can not see exactly who is superior Noci and Huawei.
Pattern or change equipment manufacturers
To be sure, if excluding the acquisition and integration risks, Noci is being acquired in this way the rise of a strong return to the road. This will also affect the competitive landscape throughout the equipment manufacturers. So far, the top three in the North American market, equipment manufacturers: Ericsson, Alcatel-Lucent and Nokia Siemens Networks will complete the transaction, are all ways to enter through the acquisition of Huawei and other Chinese equipment manufacturers in the North American market has been hovering outside the door, how to broke into the house and to no avail.
Had an advantage in North America into recession, Motorola have other equipment manufacturers “route through” the last chance to enter North America, the acquisition is completed, the pattern of the North American market will re-enter a tripod for steady state, Huawei and other Chinese equipment manufacturers hope to gradually win the way one by one operator, “self” to enter, to pay the costs and difficulties will be much larger.
In addition, Nokia Siemens Networks won the Motorola wireless assets, its “consolidation of the world’s second largest equipment manufacturers,” the throne also kill two birds with one stone meaning. According to report, Motorola is a significant part of the North American market of wireless equipment, Huawei’s products are OEM.
Yesterday, Noci do not want to evaluate competitors, but has repeatedly stressed that Noci in production and R & D has a comprehensive product line. Shows that Huawei will be affected multiple. Huawei has had an internal article points out that Huawei has just narrowed the gap with competitors, but the industry’s largest merger so that the gap has narrowed it suddenly widened, Huawei has to be straight backs, patted the soil body and began the long arduous more trek.
Bargain sale?
By The campaign, like Ericsson, Nokia Siemens Networks as the purchase method to successfully enter the North American market. According to Zhang Zhiqiang introduced before the North American market share of Motorola is 8%, 6% Noci, acquisition, Noci to 14% of the share of North America’s third-largest wireless equipment manufacturers.
Year to 1.13 billion U.S. dollars, Ericsson won the Nortel beat Noci when Noci executives had “sour” to express, Noci offer very reasonable, not necessary at all costs in the final process. The implication is that Ericsson 1.13 billion bid is too high, Noci final offer, and 6.3 billion dollars. But after one year, Noci showed the more generous on – 12 million. Simply to enter the North American market as the price of view, or the acquisition of Motorola’s acquisition of Nortel’s wireless assets can get the North American market share, compared with Nortel’s share of the North American market that year was about 12%, higher than the Motorola’s 8 %.
Meanwhile, the acquisition of Nortel, Ericsson, consolidated the leading market share in Korea, while Nokia Siemens Networks will become Japan’s largest foreign supplier of wireless equipment. Noci concerned, due to different periods have different marketing strategies, new CEO Sullivan in Noci after taking office, Noci has the United States, Japan, India and China identified four strategic markets, the acquisition of two direct stability major strategic market share.
Slightly Unfortunately, Noci won the Motorola-related business development, production, sales and service, the acquisition does not cover intellectual property.
Zhang Zhiqiang, said the acquisition, Noci CDMA and WiMax will be two new business and enhance the LTE, GSM, WCDMA market share and size. He also stressed that this part of Motorola’s acquisition of the asset itself is profitable, will Noci bring positive cash flow and higher income.
This was Ericsson, Nortel won in contrast to the assets, then Nortel has been plunged into a loss of assets. According to report, Noci won the Motorola wireless assets in 2009 sales revenue of 3.7 billion, a slight profit.
Nokia Siemens Networks said the acquisition be funded out of themselves, including the cooperation with banks and financial groups, parent does not need to pay, but it will enable Nokia Siemens Networks continue to integrate, or even financial loss on the road traveling.
Noci 2009, only 12.574 billion euros revenues, loss of 1.639 billion euros, excluding one-time write-off if the cause of the loss of intangible assets, Noci first profit 28 million euros, while Motorola’s acquisition of the assets, will result in 1.2 billion U.S. dollars to re- the debt burden.
