Huawei's $530M buyout of JV with Symantec sparks security worries

Chinese telephone and networking equipment maker Huawei has agreed to buy out its Hong Kong joint-venture partner Symantec for $530 million, a deal that already is raising red flags among U.S. officials concerned about security issues. The deal is expected to be completed in the first quarter.

The Huawei Symantec partnership has never been a profitable one, and the agreement between the two called for one or the other to acquire full ownership eventually. Computer security software specialist Symantec had always been the more logical choice to sell its stake of the security and storage products vendor--founded in 2008--analysts told Bloomberg, since the JV is under the control of Huawei execs in Hong Kong.

Intelligence officials told Bloomberg that long-standing concerns about Huawei's ties to the Chinese military and its Ministry of State Security could cause U.S. officials to examine the deal more closely.

For its part, Huawei denies it has any ties to the Chinese government or military.

For more:
- see this Bloomberg article

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