BEIJING, May 26 (Xinhuanet) -- China Mobile Communications Corp. is reportedly on the verge of acquiring Millicom International Cellular SA in a US$5.3 billion deal that would expand the Chinese company's footprint into a slew of emerging markets around the world.

    Leaders of China Mobile, the largest wireless phone company in China and the biggest in the world in terms of subscribers, still need to sign off on the agreement, The Wall Street Journal reported Wednesday on its online site.

    By acquiring Luxenbourg-based Millicom, China Mobile would obtain wireless assets in Latin America, Africa and South Asia. Millicom only serves 10 million customers, but it controls valuable licenses in 16 developing countries, including Bolivia, El Salvador, Chad and Cambodia. The territory it covers holds nearly 400 million people.

    In January, Millicom announced it had received a "high number" of unsolicited bids and that it had hired Morgan Stanley to evaluate offers. Officials at Millicom and China Mobile couldn't be reached for comment Thursday.

    The acquisition would also represent the most expensive takeover of a non- Chinese company by a Chinese firm. The move could also help Chinese vendors of network equipment to expand overseas as suppliers to Millicom.

    In fiscal 2005, Millicom posted a net profit of US$33.4 million on a 20 percent increase in revenue to US$322 million.

(Source: Shenzhen Daily/Agencies)