China Mobile might buy Oi

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s