Deals
Who Wins and Loses If China Creates a New Mobile-Phone Giant
- Huawei, ZTE could lose out from a reduction in competition
- Investors Tencent, Alibaba may win if stock losses recouped
A passenger looks at a smartphone on a subway train in Shenzhen, China.
Photographer: Qilai Shen/Bloomberg
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The prospect of a merger between China’s second- and third-largest mobile carriers sent shares in China Tower Corp. plunging for a second day Wednesday, as investors bet the infrastructure operator would lose out in a potential deal that could help realize the country’s 5G ambitions.
A proposal to merge China United Network Communications Group Co. and China Telecommunications Corp. is being reviewed by the country’s top leaders, people familiar with the matter told Bloomberg, as Beijing seeks to secure an edge over the U.S. on 5G, the high-speed wireless technology set to revolutionize how we use everything from home appliances to cars.