Huawei-3Com JV clears final hurdle
3Com and Huawei Technologies have secured the final government approval required to complete the joint venture (JV) between the two parties.
3Com and Huawei Technologies have secured the final government approval required to complete the joint venture (JV) between the two parties. The Chinese government has given the go-ahead for the JV and, as such, the two parties have signed the final agreements.
The vendors will now be able to move into full swing with their plans to deliver end-to-end enterprise networking solutions. 3Com will market and support Huawei-3Com products under the 3Com brand in all countries except China and Japan where Huawei will assume control.
Huawei is also delivering its enterprise networking assets, including LAN switches and routers, engineering, sales & marketing resources, as well as related intellectual property. 3Com is, in turn, contributing US$160 million in cash, assets related to its China and Japan operations and some intellectual property.
"By leveraging the enormous capabilities of our new joint venture, 3Com intends to fundamentally change the playing field in the enterprise networking industry," says Bruce Claflin, 3Com president and chief executive officer, and Huawei-3Com chairman.
"3Com now has one of the broadest lines of networking products in the world, including a full suite of voice and data solutions, for both wired and wireless environments. Backed by 3Com's global service, these solutions excel in quality, capability and value," he continues.
"3Com is the right partner at the right moment in the global enterprise networking marketplace," echoes Ren Zhengfei, president and chief executive officer of Huawei and chief executive officer of Huawei-3Com. "The growth potential in enterprise networking in the Chinese and Japanese markets is enormous, and the more mature markets of Europe and the Americas are ripe for competitive solutions that excel at performance and value," he adds.