Nokia completed Alcatel-Lucent merger
Nokia
and industrial investment company China Huaxin agreed to establish a
joint venture combining Nokia China and Alcatel-Lucent Shanghai Bell
(ASB) once the proposed merger of the Finnish equipment manufacturer
with Alcatel-Lucent has been closed. This is stated in Nokia
release.
The
move, which appears to resolve the question of what would happen to
the European vendors' respective China-based assets following their
merger, will see Nokia holding 50 per cent plus one share in the new
joint venture, with China Huaxin holding the remainder. The proposed
combination will require approval from Chinese authorities.
Nokia
stressed that the new joint venture "is conditional on and would
be formed after the closing of Nokia's planned combination with
Alcatel-Lucent." Under the terms of a memorandum of
understanding, the new venture would operate under the English name
of Nokia Shanghai Bell and would be registered in the China
(Shanghai) Pilot Free Trade Zone.
Rajeev
Suri, president and CEO of Nokia, stressed that the agreement serves
to underline Nokia's commitment to China, where both Nokia China and
ASB have been operating separately for some years.
"Together
with China Huaxin, Nokia will be in an excellent position to support
strategic initiatives of the Chinese government such as 'Internet
Plus' and provide a strong link between Europe and China. We look
forward to joining with China Huaxin and ASB to drive innovation for
customers in China and to help accelerate the country's shift to an
innovation-driven economy," Suri said.
As
things stand, the transaction is expected to close in the first half
of 2016.
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