Crossroads

At the intersection of technology, finance and the Pacific Rim.

Monday, May 29, 2006

Additional news on China business was the trend setting purchase of Millicom by China Mobile for $5.5 BN. Millicom focuses on LDC cellular telecom and has operations in 16 countries with 10MM subs. Many think Chinese will follow in the footsteps of Japanese and Korean businesses in setting their business model. It is clear that Chinese businesses have their own mind and are creating their own path. Follow it closely. They (as well as the Indian entrepreneurs and business leaders) are quite willing to take risks to shake up their companies and industries--witness Lenovo and IBM. The purchase of Millicom is based on different circumstances, but again shows that they are quite willing to use M&A as a tool to accelerate their development.

5 Comments:

Blogger Jinwoo IM said...

I just could read the former part of the article you hyperlinked with this message, "The rest of this article is only available to registered users."

Hmm... This view is new to me because I have thought China would follow the ways of Korea and Japan to some extent and then they would make their own way. Surprising and somewhat scary. ^^;

1:20 AM  
Blogger LeftBack said...

China Mobile’s acquisition of Millicom International Cellular is a natural evolution for the Chinese giant. Their target market is low income customers which gives them a home team advantage when it comes to China. Add to this all the cheap engineers and scientists available to China Mobile through China’s rich job market as well as China’s proximity to emerging markets in Vietnam, Burma, Cambodia and other places, and you’ve got a potent recipe for success. Very soon China telecom will replace its foreign suppliers with domestic ones. With the company’s consequent ability to create low cost wireless infrastructure it can leverage Millicom’s operations in 16 different countries. Companies like Lucent, Motorola, Nokia and especially Ericsson must feel a little nervous about these developments.

10:44 PM  
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