Nokia to buy Alcatel-Lucent for $16.6B, eyeing global market
Acommunications and IT giant Nokia has confirmed that it has finalized a deal to buy AlcatelLucent in a share deal worth 15.6 billion Euros (US $16.6 billion). If shareholders offer their tick of approval, the deal is set to be finalised by the first half of 2016.
Under the “memorandum of understanding” Nokia and the French-based telecommunications company Alcatel-Lucent are expecting to realize millions in “operating cost synergies” from reduced overheads, “organizational streamlining [and] rationalization of overlapping products.” The combined company is expected to have its headquarters in Finland, though the business will maintain major R&D centres in France.
Nokia has also used the occasion to announce that it is considering the sale of its Here mapping business, with the Finnish company conducting “a review of strategic options” for the business, which “may or may not” lead to a sale.
Both Nokia and AlcatelLucent are looking towards an increased global presence under the deal, with a focus on the US and Chinese markets and growth in Europe. Nokia President and CEO Rajeev Suri described the arrangement as “the right deal, said May 7 that the exploration was showing promise but provided no details. Exxon Mobil now says it is still working to determine the commercial viability of the find at a site within with the right logic, at the right time.”
“Our innovation capability will be extraordinary, bringing together the R&D engine of Nokia with that of AlcatelLucent and its iconic Bell Labs,” Suri said. “We will continue to combine this strength with the highly efficient, lean operations needed to compete on a global scale.”
Similarly, Alcatel-Lucent Mobil Exploration Co.
The company says it encountered more than 295 feet (90 meters) of high-quality oilbearing sandstone reservoirs in the drilling site about 120 miles (193 kilometers) off Guyana. It said the well was safely drilled to 17,825 feet (5,433 meters) in 5,719 feet (1,743 meters) of CEO Michel Combes said the deal would bring the financial strength and critical scale needed to become a global leader in technology.
“This transaction comes at the right time to strengthen the European technology industry,” he said. “We believe our customers will benefit from our improved innovation capability and incomparable R&D engine under the Bell Labs brand. The undeveloped country of about 800,000 people.
Venezuela has long claimed about two-thirds of Guyana’s territory as well as the offshore area where Exxon Mobil began drilling in March.
In October 2013, the Venezuelan navy detained an oil research vessel operating under contract for U.S.-based Anadarko Petroleum Corp. global scale and footprint of the new company will reinforce its presence in the United States and China.”
Nokia and Alcatel-Lucent were forced to respond to increased speculation about the deal, releasing a joint statement saying, “There can be no certainty at this stage that these discussions will result in any agreement or transaction.”
Both Nokia and Alcatel- Guyana Foreign Minister Carolyn Rodrigues-Birkett said in March that her country would Lucent declined to comment further following the acquisition news.
Now the two companies, which have long been household names in the mobile phone space, have embarked on a new path towards becoming a joint company targeting a future in fixed and mobile broadband, cloud services and the enterprise market. push ahead with exploration in the area despite protests by Venezuela. AP.
One of Exxon’s Oil Vessels that arrived in Guyana
earlier this year.