According to Associated Press, UBS said it believes consolidation within the wireless equipment market may have ended now that three companies (Ericsson, Lucent/Alcatel and Nokia/Siemens) control 70% of the market. UBS does, however, expect M&A in the wireline and enterprise sector with Siemens’ enterprise business on the market. UBS said Motorola is not likely to make large-scale acquisitions, although smaller deals are possible.
Why do analysts continue to leave Haiwei out of these speculations? Haiwei may not be large but their potential market is… North America. Haiwei needs a North American partner or acquisition to open up the North American market. Haiwei needs the native understanding of Americans and Canadians to break into the North American geography. How better than to acquire Nortel – a large company with a history in the marketplace but without the baggage of the US government having to approve the acquisition? Haiwei buys Nortel dumps the employees and the obligations and takes the customer list and a few key regional techies/customer reps. Instant market presence!
UBS Speculates About M&A
According to Associated Press, UBS said it believes consolidation within the wireless equipment market may have ended now that three companies (Ericsson, Lucent/Alcatel and Nokia/Siemens) control 70% of the market. UBS does, however, expect M&A in the wireline and enterprise sector with Siemens’ enterprise business on the market. UBS said Motorola is not likely to make large-scale acquisitions, although smaller deals are possible.