HONG KONG—SK Telecom Co. Ltd. said it plans to buy up to $1 billion in China Unicom Ltd.’s bonds in an effort to tap the world’s largest mobile market.
South Korea’s largest wireless operator said it will acquire a 6.7 percent stake in China Unicom, the country’s second-biggest carrier. The companies plan to work together to develop and deploy new handsets, networks and services.
“We believe that the strategic alliance will facilitate the company’s future development, enable the company to provide better services to its CDMA subscribers and create greater shareholder value,” China Unicom Chairman Chang Xiaobing said in a prepared statement.
The move underscores SK Telecom’s efforts to tap other markets as growth slows in South Korea. China claims more than 400 million wireless users and analysts believe the market will explode as 3G networks and services come online.
Other operators including Vodafone Group plc and NTT DoCoMo Inc. are also eyeing the market.
