Huawei teamed up with Chengdu High-tech to control TD Tech with 100% equity, but the 2.12 billion sale of Nokia failed to reach

On January 19, the official website of the State Administration for Market Regulation announced the "case of acquiring the equity of TD Tech Co., Ltd. between Huawei Technologies Co., Ltd. and Chengdu High-tech Investment Group Co., Ltd.". This attention-grabbing dispute includes: significant new progress.

In this transaction, Huawei, Chengdu High-tech and other operators plan to jointly acquire 100% of the equity of TD Tech.

Before this transaction, Huawei and Nokia Solutions and Networks GmbH & Co. KG (Nokia) indirectly held 100% of the equity of TD Tech and jointly controlled TD Tech.

After the transaction, Huawei, Chengdu High-tech Investment Group Co., Ltd., Chengdu High-tech Jicui Technology Co., Ltd., Huagai Venture Capital Management (Beijing) Co., Ltd. and other operators will hold a total of TD Tech owns 100% equity and jointly controls TD Tech.

Chengdu Hi-tech Investment Group Co., Ltd. (collectively referred to as "Chengdu Hi-tech Investment Group" with its related entities) was established on October 28, 1996 in China (Sichuan) Free Trade The main business of the pilot zone is industrial investment, construction and development, and park supporting value-added services. The State-owned Assets Finance Bureau of Chengdu High-tech Industrial Development Zone holds 90% of the shares and controls it.

Chengdu Hi-tech Jicui Technology Co., Ltd. ("Chengdu Jicui") was established in the China (Sichuan) Pilot Free Trade Zone on May 27, 2020. Its main business is industrial investment. It is a state-owned enterprise in the High-tech Industrial Development Zone The Financial Services Bureau holds 100% of the shares.

Huagai Venture Capital Management (Beijing) Co., Ltd. (collectively referred to as "Huagai" with its related entities) was established in Beijing, China on June 11, 2015. Its main business is private equity fund management and investment. The controllers are Xu Xiaolin and Lu Binghui.

Tingqiao Company was established in Beijing, China on March 24, 2005. Its main business is the research and development and promotion of communication solutions for industry customers. The ultimate controllers before the transaction were Huawei and Nokia.

After Huawei was subject to continued sanctions from the United States, TD Tech obtained the design and technology authorization for Huawei mobile phones to manufacture and sell its own brand of smartphones. The models and specifications are exactly the same as Huawei mobile phones. For example, the N8 Pro is a nova A replica of the 8 Pro, the TD TECH M40 is a replica of the Mate 40. Even the names of the P50 and Mate 50 are exactly the same.

Let’s review the historical evolution of this incident——

In June 2006, the telecommunications equipment business of Nokia and Siemens merged, with each party investing 50 %, established Nokia Siemens Networks (Nokia Siemens Networks).

In April 2007, Siemens sold all its shares in TD TECH to Nokia Siemens Networks.

In 2011, TD Tech established a wholly-owned subsidiary, Chengdu TD Tech, to focus on the research, development and promotion of communication solutions for industry customers.

In July 2013, Nokia acquired 50% of Nokia Siemens' shares held by Siemens for 1.7 billion euros and renamed the company Nokia Solutions and Networks, thus holding 51% of TD TECH.

In April 2023, New Oriental New Materials announced that it planned to acquire 51% of the equity of TD TECH from Nokia through a fixed increase of 20 million yuan, with a transaction consideration of 2.1216 billion yuan.

Huawei immediately publicly raised strong objections, claiming that it had no intention or possibility to jointly operate TD TECH with New Oriental New Materials. Follow-up measures include but are not limited to exercising the right of first refusal, selling all shares to withdraw, and terminating its interest in TD TECH and its Relevant technology authorization from affiliated enterprises.

In September 2023, New Oriental New Materials issued an announcement and received a notice from Nokia to terminate the sale of 51% of TD TECH's equity, and the transaction fell through.

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