China Mobile, one of the world’s largest mobile operators in subscribers, has terminated an agreement to buy a 12% stake in Taiwanese mobile carrier Far EasTone Telecommunications.
The deal hit a regulatory stumbling block, although China Mobile said…
China Mobile, one of the world’s largest mobile operators in subscribers, has terminated an agreement to buy a 12% stake in Taiwanese mobile carrier Far EasTone Telecommunications.
The deal hit a regulatory stumbling block, although China Mobile said in a stock exchange announcement that provided Taiwan opens up its telecoms services sector to China-funded companies in the future, “the parties may reconsider the possibility of equity cooperation.”
Talks about a deal between China Mobile and Far EasTone emerged in 2009, coinciding with the warming-up of relationships between the two countries.
At the time, the 12% stake had been valued at approximately US$530m. But regulatory issues repeatedly delayed a potential deal, with Taiwan’s government saying the sale contravened FDI laws.
About a year ago, Singapore Telecommunications (SingTel) sold its entire 3.98% stake in Far EasTone for NT$8.03bn (US$274m).
