Nokia Buys Alcatel-Lucent for $16.6 Billion

Posted By: Gizbot Bureau

    Finnish telecommunication giant Nokia announced on Wednesday the acquisition of French rival Alcatel-Lucent in a deal worth 15.6 billion euros ($16.6 billion).

    Nokia Buys Alcatel-Lucent for $16.6 Billion

    The deal, the biggest in the sector in more than a decade, is set to be finalised through a public exchange offer of shares between the two companies, whereby Alcatel-Lucent shareholders will receive 0.55 shares in the new company for each share of the old one, Efe news agency reported.

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    According to the transaction, Nokia shareholders would own 66.5 percent of the merged company, while the shareholders of the Franco-American rival would own 33.5 percent, creating a giant with roughly 114,000 employees, and sales in the ballpark of 26 billion euros.

    Nokia Buys Alcatel-Lucent for $16.6 Billion

    The new company, set to be called Nokia Corporation and based in Finland, will be the second largest telecom equipment manufacturer, behind Sweden's Ericsson.

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    "Together, Alcatel-Lucent and Nokia intend to lead in next-generation network technology and services, with the scope to create seamless connectivity for people and things wherever they are," Rajeev Suri, president and chief executive officer of Nokia, stated.

    Source: IANS

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