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European Commission approves acquisition of Alcatel-Lucent by Nokia


In April this year, Nokia made the acquisition of its rival Alcatel-Lucent in the telecommunications industry for $ 16.6 billion. The Finnish is intended to solidify other branches of the company, after purchasing the smartphone industry by Microsoft. By joining with Alcatel, the company would have 30% of the telecommunications market in Europe. After four months of negotiations, the European Commission finally approved yesterday (24) the completion of the purchase.

The Commission pointed out that according to EU merger and acquisition regulations, the transaction between Finland’s Nokia and Alcatel-Lucent French-American does not raise competition concerns since the two companies, although multinationals do not fight in the same segments of action. The negotiated value is more than double what Microsoft paid by Nokia’s mobile devices division. With this, the company wants to make his name even stronger in the equipment industry and systems for telecommunications.

“Nokia has a strong presence in the European Economic Area, where Alcatel-Lucent is a small competitor, and at the same time, Alcatel-Lucent has a strong presence in North America, where Nokia’s activities are limited,” Pontou the commission.

With this merger between the companies, Nokia will absorb more than 33 000 patents from Alcatel-Lucent, while Finnish has its own “only” 11,000 patents involving data transmission technologies with mobile network equipment, and also the radio frequency that make routing phone calls. In this union will also come 50,000 employees for Nokia, amounting to a total of 110,000 employees in this sector, with a market capitalization close to $ 40 billion.

These new patents acquired by Nokia should be used for the development of next-generation mobile internet, to replace the 4G. Nokia is one of the most interested in developing as well as other companies also start their testing debut for the new network to 2020.


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