Xinhua Financial Network (XFN), partly owned by the government-controlled Xinhua News Agency, yesterday announced its acquisition of the Asian operations of Agence France-Presse, a first step towards forming what it called a global alliance.
The news agencies said they were in talks with several United States-based financial news providers. Companies with between 120 and 180 employees were being examined, although no specific targets were named, and a decision was expected by July.
The 55 staff at AFX-Asia's 12 bureaus are to join XFN's workforce of 120. The two agencies will share the resources - including software and news terminals - and clients.
No financial terms were disclosed but AFX News would gain a minor stake in XFN.
The companies said the alliance was aimed at providing local content with regional management, as well as lower costs for customers.
Companies are normally charged a monthly leasing rate of HK$200,000 to HK$1 million, depending on how many terminals are installed and the type of operation.