China Mobile has pulled the plug on a deal to buy a minority stake in Taiwanese operator Far EasTone after regulatory hurdles proved too difficult to overcome.
The deal for the world’s largest operator to buy a 12 per cent stake in the Taiwanese company was first agreed in 2009 after the Chinese government allowed mainland companies to invest in Taiwan.
The strategic cooperation agreement established between the two companies in April 2009 has also lapsed with the termination of the deal.
However, the companies have entered into a new business cooperation framework agreement as China Mobile feels it will be beneficial “to continue to pursue and explore broad-based cooperation with Far EasTone in new areas, products and content”.
Far EasTone is Taiwan’s third largest operator with just short of 7 million connections. The six-strong operator market is led by Chunghwa Telecom with 10.4 million connections, with Taiwan Mobile slightly ahead of Far EasTone with just over 7 million.