Nokia agrees to purchase Alcatel-Lucent for $16.6 BillionBy Robin-Leigh Chetty 15 April 2015 | Categories: news
Following the sale of Nokia's mobile division to Microsoft last year, plans for the Finnish manufacturer have been unclear. Now however, it appears as if Nokia is readying to become one of the largest provider of telecoms equipment in the EU region, as it is finalising negotiations to purchase French company Alcatel-Lucent.
According to reports, Nokia and Alcatel-Lucent plan to complete the deal within the early half of 2016, with a proposed figure of $16.6 billion said to be on the table. Alcatel-Lucent is expected to use the Nokia brand for most of its operations following the acquisition, but will retain the Alcatel-Lucent name for its Bell Labs research and development division.
In a press release, Nokia has stated that "each company's Board of Directors has approved the terms of the proposed transaction, which is expected to close in the first half of 2016. The proposed transaction is subject to approval by Nokia's shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions."
Nokia went on to disclose its enthusiasm for the pending deal. "The combined company will have unparalleled innovation capabilities, with Alcatel-Lucent's Bell Labs and Nokia's FutureWorks, as well as Nokia Technologies, which will stay as a separate entity with a clear focus on licensing and the incubation of new technologies."
In related news, Nokia has also announced that it is considering the sale of its Here mapping division. According to Nokia, the evaluation of its Here service offering comes at the time of the proposed Alcatel-Lucent deal. The Finnish company stated that "it has initiated a review of strategic options for its HERE business. That review is ongoing, it may or may not lead to a transaction, and any further announcements about HERE will be made in due course, as appropriate."
Most Read Articles
Have Your Say
What new tech or developments are you most anticipating this year?