China’s telecom restructuring gets a move on: China Unicom to buy China Netcom for $23.8B

Following the Chinese government’s decision to require a complete restructuring of the country’s telecommunications sector prior to issuing 3G licenses, one the country’s operators announced more details about the mergers and acquisitions that are set to take place in the coming months.
Through a series of deals, the country’s bevy of telecommunications companies will be narrowed from six to three, which each of the remaining companies getting 3G licenses from the government. Once all the transactions are complete, each of the companies will offer fixed and wireless services. Until now, fixed-line operators were not allowed to offer mobile services and mobile operators couldn’t sell fixed-line services.
According to the Wall Street Journal and other news outlets, China Unicom Ltd. will acquire China Netcom Group Corp. Ltd. for a swap of shares valued around $23.8 billion, and China Unicom will sell one of its wireless networks to China Telecom Ltd. for about $15.9 in cash.
China Unicom expects the deal to close by the end of the year while China Telecom is looking for its deal to close by the end of September, according to reports.