Nokia/Alcatel-Lucent to merge January 14

Staff writer
05 Jan 2016

Nokia said on Monday it has gained control of Alcatel-Lucent following its $17 billion all-share offer and the two companies plan to begin combining their operations next week.

The Alcatel acquisition, first announced in April last year, is expected to put Nokia into a stronger position to compete with Sweden's Ericsson and China's Huawei.

The French stock market authority said interim results from the offer showed Nokia would hold around 79% of Alcatel-Lucent shares.

The offers in France and the United States will be reopened this month, and the final results will be published in February.

Nokia said it will move quickly to press on with integration ahead of the formal closure of the deal, expected during the first quarter.

"We are delighted that the offer has been successful, and that Alcatel-Lucent's investors share our confidence in the future of the combined company. We will move quickly to combine the two companies and execute our integration plans,” Nokia chief executive Rajeev Suri said.

"As of January 14, 2016, Nokia and Alcatel-Lucent will offer a combined end-to-end portfolio of the scope and scale to meet the needs of our global customers. We will have unparalleled R&D and innovation capabilities, which we will use to lead the world in creating next-generation technology and services."

Nokia said it intends to squeeze out the remaining shares if it reaches 95% ownership of share capital and voting rights of Alcatel-Lucent.

Nokia plans to carry out a €7 billion program to optimize its capital structure, which will see around €4 billion in distributions to Nokia shareholders, the company said in the statement.

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