Nokia accepts to buy Alcatel-Lucent for $16.6 Billion

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After yesterday’s speculation, Nokia has finally agreed to buy rival network vendor Alcatel-Lucent for 15.6 billion Euros ($16.6 billion) in stock. The deal has been approved by both company’s boards but still requires regulatory and other approvals. Nokia said it expects the deal to close in the first half of 2016.

According to recorde, Nokia also confirmed it is considering a potential sale of its Here mapping unit, one of three businesses that remained after the company sold its mobile phone unit to Microsoft. Nokia said in a statement that;

“That review is ongoing, it may or may not lead to a transaction, and any further announcements about Here will be made in due course, as appropriate,”

Both its plans to buy Alcatel-Lucent and its interest in potentially selling the maps business had come to light in recent days. Nokia Technologies–the company’s third business–serves as Nokia’s patent holding and invention arm and will be unaffected by the Alcatel-Lucent deal, Nokia said.

In the Alcatel-Lucent deal, shareholders of that company will get 0.55 shares of Nokia for each Alcatel-Lucent share they own. Nokia shareholders would own nearly two-thirds of the company and Alcatel-Lucent just over a third.

 

Image Credit: Ictnews

Source: recode

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