The biggest Chinese telephone company, China Mobile, is interested in buying Brazilian telecommunications Oi. The news has been published on China Daily and in the Brazilian press alike. China Mobile is already holding talks with regulator Anatel (Brazil’s Telecommunications Agency) to discuss details of the acquisition.
State run, China Mobile has around 870 million customers. And if the transaction works out, this figure will rise to over 900 mi customers, making China Mobile the largest mobile company in the world.
However the acquisition may not run smoothly. Oi has $ 19 bi in debts and it is under judicial recovery. The Chinese company aims at having Oi’s debts erased and has shown interest in their mobile-lines only. Currently, Oi is a bankrupt company and is going through a complicated moment, with shareholders and creditors duelling over restructuration plans.
Chinese interest in Brazil remains high, especially in sectors like transportation, telecommunications and energy. At the moment, for example, there are several negotiations between both countries such as the continuation of nuclear power station Angra3’s building works and development of transmission lines at the Belo Monte dam.