China Unicom along with Telefonica SA has stated they are to expand a strategic alliance by purchasing $1 billion worth of each others shares reports the Associated Press.

Both companies are to cooperate in the development of mobile phone technology and deliver services to multinational customers along with other segments under their joint agreement.

Company shares will be purchased on the basis of the average closing price based over a term of 30 days trading ending the 28th of August, with China Unicom becoming a stakeholder in Telefonica for the first time, while Telefonica ‘s stake in China Unicom will rise eight percent.