Nokia in talks to buy mobile network equipment manufacturer Alcatel-Lucent
The hope is that by combining Nokia and Alcatel-Lucent's mobile network equipment business, the merged company can better compete with industry leader Ericsson and China's Huawei. The transaction would also give Nokia a chance to expand its business in the U.S. where Alcatel-Lucent counts the two leading carriers in the country, Verizon and AT&T, as customers.
Ericsson currently owns 40% of the wireless network equipment market followed by Huawei's 20% slice of the pie. If Nokia and Alcatel-Lucent were counted as one company today, it would be second with a 35% market share.
Reports say that an official announcement could be made as soon as tomorrow. Nokia, which sold its devices and services business to Microsoft for more than $7 billion, currently is valued at $30.9 billion USD while Alcatel-Lucent has a valuation of $11.7 billion USD.
source: Nokia via Reuters