Friday 30 September 2016

Nokia closes €15.6bn Alcatel-Lucent deal

Jussi Rosendahl

Published 05/01/2016 | 02:30

Stephen Elop, executive vice president of devices and services Nokia Oyj, takes a photograph with a Nokia Lumia 930 during the Microsoft Developers Build Conference in San Francisco.
Stephen Elop, executive vice president of devices and services Nokia Oyj, takes a photograph with a Nokia Lumia 930 during the Microsoft Developers Build Conference in San Francisco.

Finland's Nokia said yesterday it has gained control of French counterpart Alcatel-Lucent following its €15.6bn all-share offer and the two telecom equipment makers would start to combine their operations next week.

  • Go To

The Alcatel acquisition will put Nokia into a stronger position to compete with Sweden's Ericsson and China's Huawei in a market for telecom network gear where limited growth and tough competition are pressuring prices.

The French stock market authority said interim results from the offer showed Nokia would hold around 79pc of Alcatel shares.

The offers in France and the United States will be reopened this month, and the final results will be published by the end of February.

Nokia said it will move quickly to press on with integration ahead of the formal closure of the deal, expected during the first quarter.

"As of January 14, 2016, Nokia and Alcatel-Lucent will offer a combined end-to-end portfolio of the scope and scale to meet the needs of our global customers," Nokia chief executive Rajeev Suri said.

Shares in the company rose 0.6pc by 1410 GMT on the Helsinki bourse which was down 2.1pc.

The stock is down about 10pc since the announcement of the deal in April but in October, Nokia brought forward the deal's €900m euro cost-saving target by a year to 2018.

The deal, is the biggest ever in Finland and follows a string of M&A moves that have restructured former mobile phone giant Nokia in recent years. (Reuters)

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business