CCI clears Nokia's proposed purchase of Alcatel-Lucent

By: GizBot Bureau

    Competition Commission has approved Finnish telecom gear maker Nokia's proposed acquisition of French major Alcatel-Lucent in a deal worth over USD 16 billion.

    CCI clears Nokia's proposed purchase of Alcatel-Lucent

    Giving its green signal, the fair trade regulator said the transaction is not likely to have an adverse impact on competition in India. In April, Nokia had announced the all-stock deal worth 15.6 billion euros (USD 16.6 billion) to acquire Alcatel-Lucent.

    SEE ALSO: Here Are Top 10 Mid-range Smartphone Rivals to Asus Zenfone 2 Deluxe in India!

    While Alcatel operates in both the fixed and mobile infrastructure segments, Nokia is only into the mobile infrastructure segment. Consequently, overlaps are restricted to the mobile infrastructure segment at the broadest level, the Competition Commission of India (CCI) said.

    With regard to the two companies' operations in India, the CCI said they are largely complementary in nature. "While Nokia is present in the mobile infrastructure segment, Alcatel's India operations mainly relate to fixed line services, with some operations in the mobile infrastructure segment.

    CCI clears Nokia's proposed purchase of Alcatel-Lucent

    There are overlaps within the mobile infrastructure segment. "However, in view of the fact that the proposed combination is unlikely to cause an appreciable adverse effect on competition in any of the above-mentioned segments," the regulator said in its order dated August 29.

    SEE ALSO: How To Get Extra Free Storage Space On Dropbox: 8 Simple Steps

    After examining the bidding information provided by the two companies for 2012-2015 period, CCI said there were no instances in which these entities were the only bidders. There were several instances of post bid negotiations with the successful bidder, which is also indicative of buyer power, it added. Further, Nokia and Alcatel do not appear to be close competitors in India considering the number of overlapping tenders participated by them, CCI said.

    Source PTI

    Read More About: nokia alcatel-lucent

    Stay updated with latest technology news & gadget reviews - Gizbot

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more