Nokia says it is in talks to buy all of French-US firm Al­ca­tel-Lu­cent

The China Post - - BUSINESS -

Fin­land’s Nokia an­nounced on Tues­day that it was in ad­vanced talks to pur­chase all of its Fran­coAmer­i­can ri­val Al­ca­tel-Lu­cent.

“Nokia and Al­ca­tel-Lu­cent con­firm that they are in ad­vanced dis­cus­sions with re­spect to a po­ten­tial full merger, which would take the form of a public ex­change of­fer by Nokia for Al­ca­tel-Lu­cent,” the com­pany said in a state­ment.

“There can be no cer­tainty at this stage that th­ese dis­cus­sions will re­sult in any agree­ment or trans­ac­tion,” it added.

The an­nounce­ment came a day af­ter re­ports that Nokia was in talks to ac­quire Al­ca­tel-Lu­cent’s wire­less in­fra­struc­ture.

Ru­mors have swirled since De­cem­ber of a pos­si­ble deal be­tween the two firms, with France’s Les Echos re­port­ing on Mon­day that ex­ec­u­tives had been in ne­go­ti­a­tions since Jan­uary.

The pur­chase would rep­re­sent a sig­nif­i­cant boost in mar­ket share for Nokia. The Al­ca­tel- Lu­cent wire­less in­fra­struc­ture unit alone ac­counted for 36 per­cent of to­tal sales for the Paris-based com­pany in 2014, ac­cord­ing to Bloomberg, gen­er­at­ing 4.7 bil­lion eu­ros (US$5 bil­lion) in rev­enue.

The deal would help Nokia bol­ster its mo­bile in­fra­struc­ture busi­ness against Swedish arch-ri­val Eric­s­son, prof­it­ing from Al­ca­tel’s po­si­tion as a lead­ing sup­plier of 4G and LTE mo­bile net­works and re­lated ser­vices.

But the Finnish mar­ket did not wel­come Tues­day’s news. In Helsinki, the Nokia share was down by 6.32 per­cent an hour af­ter the an­nounce­ment.

On the Paris stock ex­change how­ever, the Al­ca­tel-Lu­cent share shot up by 12.14 per­cent.

The Finnish com­pany was the world’s big­gest cell­phone maker for more than a decade un­til it was over­taken by South Korea’s Sam­sung in 2012.

In 2014, Nokia sold its cell­phone and tablet di­vi­sion to U.S. soft­ware gi­ant Mi­crosoft.

It has since then sat on most of the 5.4 bil­lion eu­ros made from that sale.

Nokia em­ploys some 55,000 peo­ple world­wide, while Al­catelLu­cent em­ploys al­most 53,000.

AFP

This pic­ture taken on Jan. 29 shows the Nokia head of­fices in Espoo, Fin­land.

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