Nokia pays $16.6 billion for Alcatel-Lucent

Nokia pays $16.6 billion for Alcatel-Lucent
The deal that Nokia said yesterday that it was hard at work on is now official. After two years of discussions, Nokia and Alcatel-Lucent have shaken hands on a $16.6 billion transaction that will combine two of the smallest network equipment firms in Europe. As we noted yesterday, the new company will now be better equipped (no pun intended) to take on industry leader Ericsson and other leading firms like Huawei.

Nokia will give each Alcatel-Lucent stockholder .55 of a Nokia share. That works out to a value of $4.32 for each Alcatel-Lucent share. When the deal closes in the first half of 2016, Alcatel-Lucent stockholders will own 35% of the combined company. Nokia will continue to remain based in Finland under the care of Chairman Risto Siilasmaa and Chief Executive Rajeev Suri. Obviously, there will be some strong ties to France where Alcatel-Lucent is now headquartered. And a vice chairman will be selected from the latter company.

Nokia said that as a result of the deal, it will look to sell some assets including the highly regarded HERE maps business. Rumors that HERE was being shopped started to circulate last week. A combined Nokia-Alcatel-Lucent immediately becomes a competitor to Ericsson, which has the largest market share in the wireless network equipment industry at 40%. Nokia now jumps into the number two slot with 35% of the pie. Huawei, the low-cost leader, owns 20% of the market.

source: WSJ

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21 Comments

1. fouadqr

Posts: 326; Member since: Nov 21, 2012

Nokia: I will be back mothafaka :D

4. Super3310

Posts: 91; Member since: May 06, 2014

all rise mothaf**kha

7. xq10xa

Posts: 808; Member since: Dec 07, 2010

Suprise mothafaka

9. dazzmichael

Posts: 71; Member since: Sep 15, 2014

some-fries mothafaka

12. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Super-size, muthafaka?

16. Niva.

Posts: 440; Member since: Jan 05, 2015

Madafakaa Jones?

17. akki20892

Posts: 3902; Member since: Feb 04, 2013

King-Rise, mudhafaka...!!

10. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

Newsflash Nokia was never away!

11. RandomUsername

Posts: 808; Member since: Oct 29, 2013

They didn't buy the Alcatel that makes phones...

2. Johnnokia

Posts: 1158; Member since: May 27, 2012

Nokia is simply immortal But $17 billion.... Seriously? Wooow I really love Nokia, but I did not imagine it as a gaint Company like this. They must revive their handset division soon.

3. Neros

Posts: 1016; Member since: Dec 19, 2014

So today's nokia has nothing to do with the nokia we once knew. Sad... This is what happens when continue making sh*ty business decisions.

13. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Stephen Elop was a really, really bad decision...

14. bendgate unregistered

Flop decision.

5. Spedez

Posts: 542; Member since: Aug 29, 2014

Not sure if good or bad news. French are such slackers at work and extremely hard to get rid of.

19. Crispin_Gatieza

Posts: 3125; Member since: Jan 23, 2014

Maybe, but the women really know how to blow. Maybe you should experience it so you won't be so bigoted and narrow-minded.

6. bobby2803

Posts: 32; Member since: Jun 28, 2014

So now three companies will control 95% of the world market.

21. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

and ? have you seen the pc market you either buy windows or mac and a small demographic buys linux that's 2 companies and an open organisation which control 100% world market

8. TheGunnyPT

Posts: 252; Member since: Feb 12, 2015

It's good news... Survival of the fittest it's basically what Nokia is trying to do here. Go for it Nokia, the % of failing is quite low in this business since there isn't an INSANE competition compared to say Android OEMS.

15. Jason78

Posts: 281; Member since: Apr 10, 2013

I'm sorry to hear that HERE Maps are going to be sold off. Nokia has done a great job with their mapping.

18. hemedans

Posts: 755; Member since: Jun 01, 2013

phone arena you call nsn smallest company really? nsn is third behind erricson and huawei and after this deal it will become second with 35% share. dont forget nsn power carrier with fastest internet in the world like those of korea

20. RangoX

Posts: 77; Member since: Feb 20, 2015

Does this mean that Nokia will make cellphones again? Nokia Idol and such?

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