Huawei was founded in 1988. After 20 years of unremitting efforts and innovation, it has become the largest network equipment manufacturer in China, with annual sales exceeding 65 billion yuan, and nearly half of its income comes from overseas.
However, if Huawei wants to expand overseas and compete with Cisco in the United States, it must acquire an American high-tech enterprise to continue its overseas business. 3Com, an American technology company, is the best target, but compared with its international counterparts, Huawei is still in a weak position. If it buys an American enterprise, it must find an international capital to hold shares. In the end, Huawei chose to cooperate with Bain Capital. One more thing, in 2003, Huawei and Cisco fought a bad lawsuit. If you cooperate with Cisco's old rival 3Com, or buy 3Com, the competition with Cisco will be more favorable.
So what kind of company is 3Com? As we all know, robert metcalf invented Ethernet. He founded 3Com Company on 1979. He is recognized worldwide as a quality supplier of network cards and regulatory agencies. He has excellent network solutions and is far ahead of other peers in various network card technologies. However, after the glory, he was finally acquired by HP because of his lack of enterprising and poor management.
Before HP's acquisition, Huawei had reached an offer with 3COM, because Huawei established a joint venture with 3Com as early as 2003. As for the reasons for the joint venture, on the one hand, it is in response to Cisco's lawsuit against Huawei, and on the other hand, it is for 3Com's technology patent. As CEO of the joint venture company, Huawei holds 5 1% of the shares. It can be said that the cooperation is smooth. If Huawei buys 3Com, it should be said that it will go smoothly.
In 2007, 3Com had a difficult operation, but H3C, a joint venture with Huawei, made unprecedented profits. 95% of 3com's profits come from this joint venture company. Later, I didn't expect the joint venture company to be wholly acquired by 3Com, and Huawei was out. However, 565,438+0% of Huawei's shares were sold to 3Com, and it also earned about $900 million.
On September 28th, 2007, Huawei and Bain Capital jointly invested $2.2 billion to acquire 3Com.
The United States is very nervous about Huawei and Bain Capital's acquisition of 3Com, in which the Committee on Foreign Investment Security of the United States reviewed the submitted acquisition for 75 days. On February 2, 2008, KLOC-0, the acquisition plan was finally rejected by CFIUS on the grounds of endangering the information security of the US government.
Endangering the information security of the US government? This is the consistent rhetoric of Americans, and everyone is familiar with it. At that time, 3Com provided a large part of computer network equipment for the US government and military institutions.
Although some departments in the United States think that Huawei will not acquire sensitive American technology, En Capital has also said that the final decision-making power is in CFIUS' hands, and he is responsible for it, and American intelligence agencies are involved, claiming that the transfer of American technology to China is a very serious problem. In the end, CFIUS stopped Huawei's M&A, which led to the failure of China's largest private enterprise's commercial M&A plan, which was favored by the American business community and caused 3COM incalculable losses.
@ Transmission Office believes that from this merger, it can be seen that the attitude of the United States towards our China technology enterprises has never changed, starting from 2008 or even earlier.
On the grounds of security, the U.S. government targeted and suppressed China's science and technology enterprises everywhere, and began to suppress them for any reason, and included them in the entity list. The stick of technological hegemonism has never been put down. From 2008 to 20 12, six M&A and cooperation plans between Huawei and American companies were stopped by the United States, which shows that we are being targeted everywhere. Although we once defeated the arrogant America on the battlefield, we were bullied everywhere in the field of science and technology.
Serial: A Brief History of Huawei Sanctions II
Disclaimer: The picture comes from the network, and the infringing contact is deleted.