Huawei buys rest of Huawei-Symantec

Huawei has announced that it is going to buy the remaining 49 percent stake in a joint venture with Symantec for $530 million.

The imaginatively named joined venture, Huawei-Symantec, was responsible for corporate security but it has not been a success and it will help Symantec to walk away from it. Huawei gets to boost its product portfolio for its enterprise customers.

The deal has to go through the US regulators which might not be too happy about it. Huawei Symantec, was set up in Hong Kong and Huawei already owns the majority stake, but Huawei has previously encountered obstacles in clinching some deals in the United States due to national security concerns.

Huawei’s biggest problem is that its founder and CEO Ren Zhengfei, is a former Chinese military officer and the US is concerned that he might order spying gear installed in his outfit’s gear.

Huawei has already had to walk away from its acquisition of server technology company 3Leaf after a US government panel didn’t like it. The US also feared a 2008 bid for 3Com.

In 2010, a group of Republican lawmakers threw their toys out of the pram when Huawei made a bid to supply mobile telecommunications equipment to Sprint Nextel Corp.

Huawei told Reuters that it is not worried about the US this time. The majority of the assets and customers are located in China and other regions.