Nokia has announced the completion of the transaction with the China Huaxin Post & Telecommunication Economy Development Center to create the Nokia Shanghai Bell joint venture.
The deal marks the official launch of the Nokia Shanghai Bell business, which combines the former Alcatel-Lucent Shanghai Bell with Nokia's China business.
But the two entities have effectively operated as one since January 2016, following Nokia's purchase of Alcatel-Lucent in a $17 billion all-stock deal. Nokia and China Huaxin also signed a final agreement last month covering the integration of the two businesses and establishment of Nokia Shanghai Bell.
China Huaxin is a state-owned industrial development company that owned half of the Alcatel-Lucent Shanghai Bell joint venture. Nokia owns a 50% plus one share stake in the Nokia Shanghai Bell joint venture, with China Huaxin owning the remainder.
Nokia Shanghai Bell will become an integral part of Nokia's global R&D operations, with around 10,000 researchers across six R&D sites in the nation. It will act as Nokia's exclusive platform in China for the continued development of new technologies in areas such as IP routing, optical and 5G.
Nokia Shanghai Bell also plans to support strategic R&D initiatives of the Chinese government and conduct long-term research projects as part of Nokia Bell Labs' Future X Network program.