As I anticipated yesterday, the negotiations to buy Alcatel-Lucent from Nokia, they were quite advanced. So much so that today are given by confirmed by the Finnish company, few minutes after media such as Financial Times airearan information.
The move will cost Nokia 15,600 million euros, and the strategy we explain it yesterday: position as a European leader, and approaching dangerously to the main company in creating infrastructure and global network equipment, Ericsson.
The combination will put Nokia as the second force in the market, very close to Ericsson
Logically not only move thinking at Ericsson, the problem it also have with the Chinese enterprises as Huawei or ZTE, it occur in all types of markets with affordable and capable solutions.
Nokia argues that the purchase is necessary for this well positioned in the era of connected devices: talk about Internet of things and the arrival of the 5G.
The resulting company wants to be a leader offering connectivity to all kinds of devices, and they will do it with a team of research and development consisting of more than 40,000 employees. The investment in this Department have been 4,700 million for 2014.
Nokia and Alcatel-Lucent, with the deal agreed and signed, waiting to get to close the purchase in the first half of the coming year. It is also expected that the resulting company follow using the Nokia brand in its activities – specifically Nokia Corporation -, and will be based in Finland.
Nokia will remain with 66.5% of the resulting company, while Alcatel a 33.5%. The group will have more than 114,000 employees, and a turnover of more than 26,000 million EUR.
It is interesting to know how were the market shares in the networks business last year. We have Nokia and Ericsson leading with 30 percent, insurance of Huawei with a 20%, with 17%, further back are ZTE and Alcatel-Lucent with an 11 and 10% respectively. It is estimated that the thing is in 2015 so: 40% for Ericsson, 35% for the new Nokia and 20% for Huawei.
The operation is the largest that has been done in recent years in this business, and will be carried out through a public offer of exchange of shares between companies: Alcatel shareholders will give them 0.55 shares of Nokia Corporation.
Nokia there are plenty you maps?
Related Nokia, also there is news about its other business strong, the maps. The Finnish company is studying the sale of Here Maps, that does not mean that they will do so, but raise it as a possibility. In recent days it was rumored that Uber and a group of German car maker, would be interested.
It seems that Nokia wants to drop ballast, as it did with the sale of the division of mobile phones to Microsoft. You want to stay with the business that really give you benefits, and where it can make a difference and grow.
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