Nokia has been one of the greatest mobile phone makers the world has ever got to see. There was an era when mobile phones extended nowhere beyond Nokia for all types of folks. And now that for long Nokia has been on the back foot because of the severe rivalry posed by Android smartphones. Seem like Nokia now is looking for a comeback, and not just an ordinary one. There have been talks earlier as well about Nokia planning to acquire Alcatel-Lucent. And as per the reports, this deal seems to be finalized and this deal is done for $16.6 billion.
The deal has been formally completed by both the companies except for a little process which involves approval by certain authorities. Rajeev Suri, current CEO Nokia will be leading the joint venture as the CEO itself. This deal between Nokia and Alcatel-Lucent is expected to get closed by the end of first quarter of 2016 and the joint venture will keep the Finland headquarters of Nokia and the name will continue to be Nokia itself.
In the combined company venture, Nokia will give 55% of shares to Alcatel-Lucent shareholders. Once the two companies enter the joint organization, Nokia will own 66.5% of the old shares of the company and 33.5% shares will be handed over to Alcatel-Lucent. This tie up is mainly targeting Sweden’s tech giant, Ericsson. The combined company will employ about 114,000 employees and will target a combined sales of around 26 billion euros.