Posted June 07, 2018 09:11:30In August 2017, Southland announced it was acquiring Huawei Technologies, a Chinese company that specializes in communications technology.
The deal would be the first of its kind in the country, and it would make Huawei the largest telecommunications company in the world.
The acquisition will see Huawei invest a total of $19 billion in Southland, which includes the Southland telecommunications network and a number of regional networks.
The companies deal was approved by the Australian Securities and Investments Commission (ASIC), and the merger will begin in 2019.
The announcement of the merger has sparked some controversy, and Southland has responded to it by announcing a series of actions.
First, the board has ordered that the company will not share any information about the deal with the media, or any other third parties.
The company has also been ordered to halt any new acquisition by Huawei.
Second, the company is suspending operations at the Southlands main campus in Victoria.
It has also suspended operations at several other Southland premises in the state, and has suspended all business on the company’s website.
Third, the Southlanders main website is being taken down, as is its mobile application.
Finally, the SA Board of Trade has suspended any further meetings between Southland and Huawei, citing concerns that the merger could be detrimental to Southland’s strategic position.
Huawei acquired Southland in September 2017 for $5.5 billion, which would have made the company the world’s largest telecommunications network operator.
The Southlands network has been used by the state’s telecom regulator for nearly a decade.
“I understand that the board of Southlanders board has acted to suspend all meetings with Huawei.
We remain confident that we can proceed in accordance with the regulatory approvals, the Board of Management’s directions and the wishes of the SouthLands board.
The SA Board will continue to monitor developments closely and will continue its ongoing dialogue with Huawei on the issues raised,” Huawei said in a statement.
In addition to its operations in Australia, Huawei has operations in Singapore, Thailand, China, and Hong Kong.
According to SouthLights CEO John Bercow, the merger would not affect Huawei’s ability to acquire more telecom assets, including in the U.K., where the company has signed a deal with Virgin Media.
While Huawei and SouthLones network are not part of Huawei’s portfolio, the deal will significantly affect Huaweis ability to compete in Australia.
SouthLands chief executive Andrew Cripps told the ABC he believes Huawei will be a bigger threat to Huawei’s global presence in Australia than Southland.
“[Huawei] is a threat to us in the United Kingdom because they have a larger footprint in the city of Birmingham and they have operations there.
They are able to do business in Australia with SouthLons network.
We are looking to expand to other countries,” he said.
When asked whether Huawei was planning to invest in SouthLlands networks, Cripp, who is also a member of SouthLasters board, told the Australian Financial Review: “We are definitely looking at doing that.
But it will be very difficult because they do have the same network footprint as us, so it is hard to see Huawei doing that.”
“But the network is a strategic asset that will be beneficial to South Lones, as we will see that Huawei is going to be a strategic player.”
While the merger is being welcomed by many in the industry, it comes at a time when Huawei is under pressure from some members of the Australian Communications and Media Authority (ACMA) over its lack of oversight over its infrastructure in Australia and other markets.
ACMA is looking into whether Huawei’s acquisition of a third-party company, called Huawei Telecom, violated Australian telecommunications rules.