Huawei buys out Symantec from joint venture
Chinese telecommunications supplier Huawei has acquired Symantec's stake in Huawei Symantec, a Hong Kong-based joint venture between the two companies that was established in 2008. As announced on Wednesday, Huawei paid $530 million for Symantec's 49 per cent share. Huawei Symantec primarily offers data storage and system security solutions to corporate customers in the Far East.
California-based Symantec, best known for its "Norton" consumer product range, explained that the joint venture was intended as a way of gaining a foothold in the Chinese market. The US firm said that this aim had been achieved and that, with a growth rate of 46 per cent over the past three years, China has become one of the fastest-growing markets. However, that growth hasn't been profitable: according to Symantec's business report, the joint venture cost the listed company about $123 million between February 2008 and December 2010.
Expected to close in the first quarter of 2012, the agreement is still subject to standard regulatory approvals and other customary closing conditions.