Chinese Unicom and Spain's Telefonica have concluded a deal that will encourage cooperation between the two telecom companies.
According to an agreement signed on Sunday each company will buy $1 billion of the other's stock. The Spanish firm's stock in Unicom will increase to 8%; and China's second-largest phone operating company will hold about 0.9% of Telefonica, the signing of an agreement is a strategic attempt to remain competitive as the global downturn has shortened. China Unicom currently competes with China Mobile and China Telecom. Unicom recently announced a three-year deal with Apple last month to become the number one Chinese phone company to make support of the iPhone, whose start in China is scheduled for Sept. 28. After the signing of the deal in Beijing Chinese Unicom stock appreciated in the CFD market.