Nokia in talks to buy mobile network equipment manufacturer Alcatel-Lucent

Nokia in talks to buy mobile network equipment manufacturer Alcatel-Lucent
Nokia announced today that it is in advanced discussions with Alcatel-Lucent about an exchange offer that would result in Nokia's purchase of the mobile network equipment manufacturer. The two companies cautioned that no deal had been agreed to, and talks could break off without a transaction announced. French Economy Minister Emmanuel Macron backs the deal, saying that he was reassured by Nokia about issues like job cuts and plant closings.

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

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19 Comments

1. Fallen1

Posts: 288; Member since: Nov 14, 2014

This could either be an amazing thing for Nokia, or a complete bust...

2. j_scorp

Posts: 61; Member since: Oct 22, 2013

I don't get it.

3. theguy2345

Posts: 1216; Member since: Jun 24, 2014

I am curious to see how it goes. It is obvious they want to get back into phones, and this might be their way in. Hopefully it is a good phone, and not the iPad mini ripoff they produce before

4. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

first of all the ipad mini ripoff looks quite different when put next to an actual ipad mini 2nd of all it's an amazing tablet if from the price to the specs to everything the design is just generic 3rd of all did you even read the article this has nothing to do phones or tablets sigh

12. fwbroke

Posts: 10; Member since: Aug 15, 2014

NOPE, ALU is already out of the handset business. "In May 2005, TCL announced that its Hong Kong-listed unit would acquire Alcatel's 45 per cent stake in their mobile-phone joint venture for consideration of HK$63.34 million ($8.1 million) worth of TCL Communication shares.[9] In June 2007, TCL announced that its mobile phone division planned to cease using the Alcatel brand and switch entirely to the TCL brand within five years"

5. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

well at the end of the day it's all about doing well in whatever industry you're in good luck nokia

7. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

Nokia is getting sold itself and now it is looking to buy another company? they should better sell off everything to lenovo

10. Johnnokia

Posts: 1158; Member since: May 27, 2012

Did not you read the total value of Nokia .. No company has $40 billion cash to purchase Nokia , perhaps only Apple. Nokia is still a very very giant company. If you could not understand the financial issue, why bother?

14. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Nokia only sold the phone division, people think they are dead..........newsflash Nokia is still huge!

11. sip1995

Posts: 1771; Member since: Feb 07, 2014

Jeeez Nokia, just buy a closed factory in China and start making phones again...

15. Crispin_Gatieza

Posts: 3153; Member since: Jan 23, 2014

Nokia hardware running some new form of Palm. I like it. Look it up if you don't know what I'm talking about.

18. Johnnokia

Posts: 1158; Member since: May 27, 2012

What are u talking about? Link please?

20. Crispin_Gatieza

Posts: 3153; Member since: Jan 23, 2014

Look it up. I'll give you a clue: Alcatel purchased Palm. Find your own links.

21. Johnnokia

Posts: 1158; Member since: May 27, 2012

I know that. But this is not Alcatel lucent. The Alcatel handset division already sold to TCL which later announced to purchase Palm brand from HP and rebuild Palm as a new company.

16. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

Nokia has NSN (Nokia SIemens Network) If that deal happen? what is it going to be called? maybe NALSN : Nokia Alcatel Lucent Siemens Network or NN : Nokia Network

19. Johnnokia

Posts: 1158; Member since: May 27, 2012

NSN currently stands for Nokia Solutions and Networks . After this acquisition, nothing will be changed .

26. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

Thank you I didn't know that they changed the Siemens to Solution.

17. 99nights

Posts: 1152; Member since: Mar 10, 2015

I don't like this one bit.. Nokia and alcatel.. Seems like a huge waste.

24. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Nokia will buy Alcatel-Lucent for 15,6 billion Euro's!

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