Nokia to buy Al­ca­tel-Lu­cent for $16.6B, eye­ing global mar­ket

The Star (St. Lucia) - - REGIONAL -

By

Claire Reilly

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.

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