Nokia will buy Alcatel-Lucent for € 15.6 billion: the deal was approved by China, the US and the European Commission
The Finnish manufacturer of telecommunications equipment Nokia, which sold the phone business to Microsoft, buys the French-American company Alcatel-Lucent for 15.6 billion euros.
Companies have received approval from the European Commission, regulators of the United States and the People’s Republic of China. After receiving approval from the French authorities, Nokia will make a formal purchase offer.
In April 2015, Nokia and ALcatel-Lucent signed an agreement of intent for the Finnish company to buy a Franco-American electronics manufacturer. Payment will be made by Nokia shares, investors will receive 0.55 Nokia securities for each Alcatel-Lucent security. The amount of the transaction will amount to 15.6 billion euros, and after it Alcatel-Lucent will cease to exist as a separate company.
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Nokia CEO Rajiv Suri in June 2015 announced that the company will return to the development of mobile devices from 2016. According to the contract with Microsoft, the company will not be able to produce smartphones under its brand until 2023, that is, within ten years after the transaction. And under a different brand, Nokia will be able to produce smartphones at the end of 2015.
In 2004, a joint venture between TCL & Alcatel Mobile Phones Limited (TAMP) was established under Alcatel for the production of mobile phones and a similar branch of the Chinese company TCL. TCL had 55% of the shares in this company, Alcatel 45%. All Alcatel handsets were moved to China. In 2005, TCL bought out the remaining shares of the joint venture from Alcatel and entered into a license agreement for a period of 10 years. TAMP was renamed TCT Mobile Limited. [1]
Alcatel-Lucent was established on December 1, 2006 as a result of the merger of Alcatel and Lucent Technologies. Alcatel has been working in the telecommunications equipment market since 1898, and Lucent Technologies was separated in 1996 from AT & T: it included Bell Labs and Western Electric. Bell Labs still exist while it is the research center of Alcatel-Lucent Corporation, and after the transaction goes to Nokia. Scientists Bell Labs were awarded seven Nobel Prizes. In 2004, the Chinese company TCL opened mobile production with Alcatel, and later bought out a joint venture and entered into a license agreement for ten years.
The Nokia acquisition of Alcatel involves antitrust authorities and trade commissions in four countries or national entities. The USA is the largest market. The European Union is the second largest market. Production will be organized in the People's Republic of China. The French authorities must approve the deal, as the headquarters of Alcatel-Lucent is located in this country.
In July 2015, the European Commission approved the deal. According to the commission, the situation in the field of competition will not worsen in this case, since the parties to the transaction are not close competitors. Nokia does not manufacture smartphones and tablets because it sold this part of its business to Microsoft.
In mid-October, the transaction was approved by the Committee on Foreign Investment of the United States, before which it made the US Department of Justice.
On October 19, the deal was approved by the Ministry of Commerce of the People’s Republic of China. Nokia said in a press release that as part of the takeover of the Alcatel-Lucent, the company will set up a joint venture in China with the China Huaxin Post & Telecommunication Economy Development Center. This will combine the telecommunications infrastructure business of Nokia with Alcatel-Lucent Shanghai Bell (ASB). Nokia’s share in the joint venture will be 50% plus one share.
Now the companies will have to receive official approval of the transaction from the Ministry of Economy of France, after which Nokia will make a formal offer to purchase Alcatel-Lucent. Companies plan to complete the transaction in the first half of 2016.
Companies have received approval from the European Commission, regulators of the United States and the People’s Republic of China. After receiving approval from the French authorities, Nokia will make a formal purchase offer.
In April 2015, Nokia and ALcatel-Lucent signed an agreement of intent for the Finnish company to buy a Franco-American electronics manufacturer. Payment will be made by Nokia shares, investors will receive 0.55 Nokia securities for each Alcatel-Lucent security. The amount of the transaction will amount to 15.6 billion euros, and after it Alcatel-Lucent will cease to exist as a separate company.
')
Nokia CEO Rajiv Suri in June 2015 announced that the company will return to the development of mobile devices from 2016. According to the contract with Microsoft, the company will not be able to produce smartphones under its brand until 2023, that is, within ten years after the transaction. And under a different brand, Nokia will be able to produce smartphones at the end of 2015.
In 2004, a joint venture between TCL & Alcatel Mobile Phones Limited (TAMP) was established under Alcatel for the production of mobile phones and a similar branch of the Chinese company TCL. TCL had 55% of the shares in this company, Alcatel 45%. All Alcatel handsets were moved to China. In 2005, TCL bought out the remaining shares of the joint venture from Alcatel and entered into a license agreement for a period of 10 years. TAMP was renamed TCT Mobile Limited. [1]
Alcatel-Lucent was established on December 1, 2006 as a result of the merger of Alcatel and Lucent Technologies. Alcatel has been working in the telecommunications equipment market since 1898, and Lucent Technologies was separated in 1996 from AT & T: it included Bell Labs and Western Electric. Bell Labs still exist while it is the research center of Alcatel-Lucent Corporation, and after the transaction goes to Nokia. Scientists Bell Labs were awarded seven Nobel Prizes. In 2004, the Chinese company TCL opened mobile production with Alcatel, and later bought out a joint venture and entered into a license agreement for ten years.
The Nokia acquisition of Alcatel involves antitrust authorities and trade commissions in four countries or national entities. The USA is the largest market. The European Union is the second largest market. Production will be organized in the People's Republic of China. The French authorities must approve the deal, as the headquarters of Alcatel-Lucent is located in this country.
In July 2015, the European Commission approved the deal. According to the commission, the situation in the field of competition will not worsen in this case, since the parties to the transaction are not close competitors. Nokia does not manufacture smartphones and tablets because it sold this part of its business to Microsoft.
In mid-October, the transaction was approved by the Committee on Foreign Investment of the United States, before which it made the US Department of Justice.
On October 19, the deal was approved by the Ministry of Commerce of the People’s Republic of China. Nokia said in a press release that as part of the takeover of the Alcatel-Lucent, the company will set up a joint venture in China with the China Huaxin Post & Telecommunication Economy Development Center. This will combine the telecommunications infrastructure business of Nokia with Alcatel-Lucent Shanghai Bell (ASB). Nokia’s share in the joint venture will be 50% plus one share.
Now the companies will have to receive official approval of the transaction from the Ministry of Economy of France, after which Nokia will make a formal offer to purchase Alcatel-Lucent. Companies plan to complete the transaction in the first half of 2016.
Source: https://habr.com/ru/post/295512/
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