Wednesday, April 15, 2015

Nokia bought Alcatel-Lucent for 16.6 billion dollars

Nokia has agreed to buy Franco-American company Alcatel-Lucent for € 15,6 billion (USD 16.6 billion). Statements about the deal published on the official websites of both the manufacturer.

Under the agreement, Alcatel-Lucent shareholders will receive 0.55 shares of the combined company for each of the shares of the old company. The transaction will be completed in the first half of 2016 and is expected to before the end of 2019 to save € 900 million on operating costs.
Nokia has promised not to cut jobs over the planned Alcatel. In the latter employs about 6,000 employees in France. Save jobs was one of the main requirements of the Elysee Palace.
Buying Alcatel-Lucent will allow Nokia to become one of the world's largest suppliers of equipment for communications networks and compete with the Swedish Ericsson and Chinese Huawei. The combined company will be called Nokia Corporation. Its chief executive officer will be the current head of Nokia Rajeev Suri, chairman of the board of directors - Risto Siilasmaa, who is currently the post in the Finnish company. The board of directors of the combined company will include three representatives of Alcatel-Lucent.
The market capitalization of Alcatel-Lucent is about $ 11.6 billion. The capitalization of Nokia is estimated at $ 29.5 billion. The total income of the companies in 2014 exceeded $ 27 billion.
"Nokia and Alcatel-Lucent confirmed that in advanced discussions about a possible merger complete" - the company said.
On the background information of interest in the acquisition of Nokia unprofitable enterprise shares of the Finnish company on the stock exchange in Helsinki fell by 7%. Securities Alcatel-Lucent at auction in Paris rose by 16%.