Samsung Electronics to acquire SELCOMO Group for $3.5B
Samsung Electronics will buy SELCO, the global telecoms operator and a subsidiary of SELCOMO, in a deal that could raise the value of Samsung Electronics, its parent company, from about $3 billion to more than $6 billion, according to people familiar with the matter.
The deal is subject to regulatory approvals and could close as soon as Wednesday, the people said.
Samsung Electronics said it was buying SELCo for $1.7 billion, or about $1 billion more than it paid for SELCA in July.SELCO is a global operator of communications, internet, and telecoms networks, and serves as the operator of several global carriers, including China Mobile, China Unicom, Orange and others.
The operator also provides broadband services to other providers, including AT&T and Verizon.
The company also provides a variety of data services to consumers and businesses.
The acquisition is a part of a larger consolidation in the telecommunications sector.
The merger could raise Samsung Electronics’ total market value to about $7.6 billion.
Samsung said the deal will create a new subsidiary, SELCON, to be known as SELCOR.
The deal will also create a separate business unit called SELDEAL, which is focused on developing wireless services, the company said.
Shelby said the new entity will provide SELCEP, which will be focused on expanding SEL Communications and telecommunications networks.SENIOR PROSPECTIVE STORIESThe transaction is the latest sign of a consolidation in global telecom markets and the latest in a series of consolidation efforts that have reshaped the telecommunications industry.
Earlier this month, the U.S. Federal Communications Commission (FCC) voted to repeal rules that had allowed wireless carriers to charge fees for certain services to people who do not have a smartphone.