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IT Companies Eye Merger
China's home electrical appliances giant Hisense mulls merger plan with computer manufacturer Langchao Group, but there is still a long way to go before the final decision, said representatives from both companies on Sunday.
The plan was proposed by the Shandong Provincial Government, which is the local government for both companies.
The Qingdao-based Hisense is the No.8 home electrical appliances producer in the country while the Jinan-based Langchao is the top domestic computer server producer.
If succeeded, the merged group will be bigger than Legend and Changhong, the top players in IT and home electrical appliances fields.
But there is still a long way to go before the plan becomes concrete, said Zhou Houjian, chairman of Hisense.
According to sources close to both companies, the two are in close discussions for the merger plan which was actively proposed by the local government, but the timetable is due to decide.
Business insiders at the same time showed their worry for the plan.
``There will be a lot of problems created by the merger,'' said Cheng Chuanlong, a senior manager of Langchao Group.
``Whether the merger proposal is practical is due to discuss,'' he said.
Langchao is expanding its business sovereignty from PC, server and software to broadcasting network, network security products and CDMA (code division multiple access) communication products.
Appliances giant Hisense entered IT field years ago. It now produces not only TV set but also PC, PDA (personal digital assistant) and mobile phones. (Chinadaily)
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