World's second largest telecoms equipment maker, Huawei Technologies, is planning to acquire 49 percent stake owned by Symantec in a joint venture between the companies, to boost their corporate security solutions business.
The value of this remaining 49 percent stake is $530 million. However, this value is below expectations.
This deal will allow Huawei to improve its product line-up for enterprise customers and also provide help to Symantec to recover from the losses they incurred in the recent past.
The present scenario of this deal is that it is awaiting approval from regulators in U.S., however, according to a number of analysts and company executives there are few hurdles that have to be cleared before the deal is approved. The primary concern regarding this joint venture, named Huawei Symantec, is that it was established in Hong Kong and at present Huawei owns major stake in the venture.
An analyst at Frost & Sullivan in Singapore, Cathy Huang, said, "Whether this deal will complete or not...it is still a question mark for now, but I feel that they have a better chance since this joint venture is established in Hong Kong, outside of mainland China," reported Reuters.
Huawei Technologies is expecting to close this deal in the first quarter of next year.