On May 18, 2007, Huawei Technologies Co., Ltd., Symantec Corporation and Symantec Hardware Holdings LLC entered into a Contribution Agreement, pursuant to which Huawei and Symantec agreed to form a joint venture based in Hong Kong with an operating subsidiary in Chengdu, China.  Huawei and Symantec intend that the joint venture be a leading global storage and security appliance and solutions provider for telecommunications carriers, enterprises and broadband access/wireless providers.  In accordance with the terms of the Contribution Agreement, Huawei will contribute certain security and storage appliance assets (including operating assets and personnel) and Symantec will contribute $150 million in cash.  Huawei and Symantec will initially own 51% and 49%, respectively, of the joint venture.  However, Symantec will have an option to increase its ownership interest to 51% three years after the closing.

The transaction requires several PRC governmental approvals as well as certain U.S. export license approvals. 

Shearman & Sterling is representing Huawei.  The principal S&S attorneys involved in the transaction are Lee Edwards (MA - BJ), Rachel Gu (MA - BJ) and Yongqing Huang (MA - BJ); Scott Lyne (IP - NY) and Christy Lai (IP - MP); Stephen Hibbard (LT - NY); Laurence Crouch (C&B, Tax - MP) and Elizabeth Lieb (Tax - MP); Beau Buffier (Antitrust - NY), Hans Juergen Meyer-Lindemann (Antitrust - DD) and Marcus Scharf (Antitrust - DD); and Cynthia Abelow (Export Control - DC).