Marriage proposal Noci and Arun foreign periodicals should rise Huawei – Huawei
Lead: The author said the foreign media today, with Nortel Networks, Ericsson will be the assets of the bag, the industry needs of smaller rivals unite to challenge only the status of Ericsson, but they may not see clear this situation, because I have experienced the pain of mergers and acquisitions, these companies are now on the M & A is avoided like the plague.
Marriage between the second and fourth largest giant
Theory, Nokia Siemens Communicate Corporation (hereinafter referred to as "Nokia Siemens") and Alcatel-Lucent merger is a viable option. The two companies were the world's second largest by market capitalization and fourth largest mobile network equipment vendors.
Two companies can achieve economies of scale through mergers in order to better technology with the performance and enjoys a leading position to compete with Ericsson, while relying on cheap tactics and-coming one to compete with China and the industry.
"Nokia Siemens and Alcatel-Lucent may wish to consider Cooperation , Compete in size with Ericsson and Huawei and Western defense alliance with the industry. "MKMPartners analyst PabloPerez-Fernandez said," Huawei's cost advantage and the resulting competition or lead to industry consolidation trend of the fuse. "He said.
Merger also allows both transactions easier for the financing of the huge R & D expenditure, R & D is the competition for next-generation LTE (Long Term Evolution) will go a move.
But almost no one think that this will become a reality.
"The two companies are confused by the recent merger of suffering dizzy, and LTE technology in order to come out on top will be more difficult and more painful." "Swedish telecoms consultancy Northstream CEO BengtNordstrom said.
Bumpy acquisition of Tanzania France's Alcatel and U.S. Lucent in 2006 after the completion of marriage, as too complicated hierarchical management, staff functions overlap seriously, Alcatel-Lucent has been losing money. The company's shareholders are still waiting for 1.4 billion euros (about 2 billion U.S. dollars) in real terms of pre-tax annual synergies, the company had fallen to pre-merger market value than the level of about one-fifth.
Founded in 2007, Nokia Siemens Networks has achieved a certain amount of operating profit and 20 billion euros in merger synergies. But under the Siemens bribery scandal, Nokia Siemens debut delayed several months, the company had ambitions to set a goal of 10% profit margin, but the actual situation and far from ideal.
Some analysts said it must make the management of Nokia is deeply depressed, they may reconsider whether the telecommunications equipment can continue as a core business issue.
Based on mutual agreement Nokia Siemens Networks will operate for six years until 2013. The two companies are currently not mention an exit strategy. Analysts believe that Siemens is not very much hope to continue operating, because since the establishment of joint ventures, it has completely out of the telecommunications industry.
Coveted LTE technology-related transactions However, the merger is still very good reasons, because market is declining, and the growing influence of Huawei's rise in the industry. Alcatel-Lucent and Nokia Siemens
mobile device market is expected to shrink about 10% this year, the two companies have lost a small market share. According to research DellOro said the second quarter of this year, Nokia Siemens Networks mobile device market share of 26% from a year ago to 20%. Alcatel-Lucent's market share is from 14% to 12%.
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