China Mobile is interested in expanding into the Portuguese and
Brazilian market and Portugal Telecom is expected to be its preferred
investment target, because of its operations in Africa and Brazil,
according to market analysts.
The board of China Mobile, which is considering investing in Germany,
South Africa, Brazil, Portugal and North Korea, has started the process
of analysing the macroeconomic and economic climate of five countries,
according to Chinese English-language newspaper the Morning Whistle.
If it goes ahead this will be the latest in a series of Chinese
investments in Portugal following transactions that made large Chinese
companies major players in the Portuguese energy sector (China State
Grid Corp and China Three Gorges) and the financial sector (Bank of
China).
Portugal Telecom has a 25 percent stake in one of the most important Brazilian mobile telecommunications companies, Oi.
In Angola, it owns 25 percent of mobile telecommunications operator
Unitel, 40 percent of Multitel (Internet access and data provider) and
also controls ELTA, Angola’s telephone directory company.
In Mozambique it owns directory company, Listas Telefónicas de
Moçambique and Teledata (ISP and data), in Cape Verde it has a stake in
CV Telecom (40 percent) and Directel (60 percent) and in São Tomé and
Príncipe it has a majority stake in Companhia Santomense de
Telecomunicações (51 percent).
It is also present in Namibia, Kenya and in Timor.
In an analysis issued last week, analysts from Portuguese bank BPI
said that, if the investment went ahead, “Portugal Telecom would be the
most likely candidate given its international presence both in Brazil
and in Africa.”
As well as Portugal Telecom, another potentially interesting operator
would be Zon, which is currently being merged with Sonaecom, and which
has a significant stake in Cable TV in Angola and whose shareholders
include Angolan billionaire Isabel dos Santos.
China Mobile is the world’s largest mobile phone operator by number
of customers and, according to analysts from Trefis, Portugal Telecom,
which ahs a market capitalisation of US$5 billion, is within the
company’s grasp.
“Portugal is going through a big recession and with record
unemployment it may not make financial sense to enter the market at this
stage. However, comparatively low valuations may encourage China Mobile
to put its foot in the door of a developed market,” the analysts said.
Trefis also noted that the mobile communications market in Portugal
is similar to China’s, as it has three large operators: TMN (PT group),
with 7.3 million customers, Vodafone Portugal, with 6.6 million, and
Optimus, with 2.5 million.
In March 2012 the chairman of China Mobile, Wang Jianzhou, said that
the board planned to expand the company’s business to other markets but
that this had not been possible due to the high price of acquiring
companies that were already set up in those markets.
Privatisation operations in Portugal, which have become necessary
because of the country’s economic and financial crisis, have led to
Chinese companies entering the market.
