Electronics Production | September 28, 2007
Huawei to acquire 3Com
Chinese Network Giant Huawei and a US Investor swallows 3Com in a stock transaction.
US based Network Company 3Com Corp. has agreed to sell itself for $2.2 billion to Investment Bank Bain Capital Partners LLC and Chinese Telecom Network Firm Huawei Technologies Co. The rising competition from Asian manufacturers has put further pressure on U.S. and European networkers to reduce costs. It has also become harder to raise product prices and thereby boost profits. The deal would give Huawei a bigger foothold in the U.S. and European markets. 3Com makes equipment used to run corporate networks.