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Tata Communications acquires 50% stake in Chinese Co |
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Tata Communications last week reported that its international subsidiary has acquired 50 per cent stake in a Chinese telecom company, China Enterprise Communications, for an undisclosed sum.
"We have signed an equity joint venture agreement with the shareholders of China Enterprise Communications, which will become effective after the necessary approvals from the relevant government and regulatory bodies in China are obtained," Tata Communications MD & CEO N Srinath told reporters.
This is the maiden entry of Tata Communications into China. Earlier this year, the Indian company had announced that it will invest USD 2 billion in emerging markets.
This acquisition of 50 per cent stake opens a new market, which is the fastest growing in the world, for Tata Communications hitherto closed for it, he said.
China Enterprise Communications is a value-added telecommunications services and integrated IT solutions provider headquartered in Beijing.
By this tie-up, Tata's customers would get a chance to enter China and the Chinese company would get global connectivity, he said.
The "modest investment" by the Tatas comes on the background of growing bilateral trade between both the countries.
Last year, bilateral trade between the countries touched USD 40 billion.
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