Nokia buys Alcatel-Lucent

By Drum Digital
15 April 2015

Nokia is in talks to buy the French telecom company Alcatel-Lucent in an all-stock deal valued at $16,6 billion (about R200 billion).

The deal, which is the biggest-ever acquisition by the Finnish telecom giant, would help its ambition to become a major provider of telecom and networking equipment.

Under the terms of the deal investors will receive 0,55 Nokia shares for every Alcatel share they own.

As a result, Alcatel shareholders would own 33,5 % of the new entity and Nokia would control 66,5 %.

“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,” Nokia said in a statement.

The new company will use the Nokia brand, but will retain the name of Alcatel-Lucent's Bell Labs for its R&D (research and development) activities.

The combined company will have about 114 000 employees and combined sales of around 26 billion Euros.

In mobile equipment it will rank a strong second, with global market share of 35 %, behind Sweden's Ericsson with 40 % and ahead of Huawei's 20 %, according to Bernstein Research.

The deal will be finalised in the first half of 2016.

-Sources:  ibtimes.com and Reuters

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