Huawei
Nokia canceled TD Tech sale, rejoins Huawei partnership
Today, Nokia officially canceled the sale of its TD Tech share, a joint venture with Huawei, to China’s New East New Materials, which is known for its raw material manufacturing facility.
The latest confirmation came in an official announcement issued by New East New Materials, which highlights “Announcement on Receiving the Notice of Termination of Sale of 51% Equity in TD TECH by NOKIA”. The buyer said that it would take legal action to safeguard the rights and secure the interest of all shareholders.
Nokia sent the notice of termination of this agreement to New East New Materials. Among the two parties, Nokia said to take this decision unilaterally.
TD Tech is operated by TD Tech HOLDING LIMITED from Hong Kong, which has two owners. First is Nokia Siemens with 51% shares and Huawei with 49% shares.
Back in April, Nokia decided to sell its 51% stake in TD Tech to New East New Materials, which transferred the decision-making power to the new major shareholder. At that time, Huawei shared its own statement with the following four key factors:
- First, our joint venture with Nokia to operate TD TECH is based on the strategic cooperation, technical strength, and global sales and service capabilities of both parties;
- Second, our company agrees with Nokia’s sale of equity, but the purchaser of the equity must have the same strategic capabilities to have the basis for continuing existing cooperation. Our company has no intention or possibility to jointly operate TD TECH with New Oriental New Materials;
- Third, our company is assessing the relevant situation and has the right to take follow-up measures, including but not limited to exercising the right of first refusal, selling all shares and withdrawing, and terminating the relevant technology authorization to TD TECH and its subsidiaries;
- Fourth, our company hopes that shareholders with strategic value will jointly support the continued development of TD TECH.
Nokia’s reaction:
Nokia also reacted via Mobiili.fi, saying that the company has canceled the market share sale of TD Tech by exercising its rights under the agreement. Nokia also said that it is still looking to sell all of its shares but finding a suitable option.
Meanwhile, Huawei has not commented on this matter.