Update: Nokia confirms that it will buy Alcatel-Lucent, will acquire it by 15,600 million euros
As we are told from Bloomberg, Nokia It has confirmed what was had been speculating days ago – some would say that months, years. There is an interest for purchasing Alcatel-Lucent, It is currently a direct rival in the creation of infrastructures and equipment of networks around the world.
In fact, the negotiations would be fairly advanced between the Finnish company and its rival based in France. The intention is to create the leading power in Europe in the development of networks, that will compete with the Swedish Ericsson -current leader-, and china Huawei Technologies.
European companies have to find ways to be competitive with the prices of Chinese competition: ZTE and Huawei
Movements on the different exchanges where listed companies, with increases significant in the case of the French company, and falls in the case of Nokia. The union would be a company that would have had in 2014 25.900 EUR million combined revenues, and more than 100,000 employees.
Not give dates on an ad, but we know that on May 5 Nokia has to present financial results to their investors, while Alcatel-Lucent will do the same on May 26. It would be logical that in any of these dates tell us something more serious on the possible agreement, we doubt that they do so before much information that is filtered by.
Concrete gains we can talk that Nokia well come you to become more competitive against Ericsson in the U.S. market, where Alcatel makes thick as thieves with the operators Verizon and AT & T, also in the Internet business.
Alcatel-Lucent side we have a drop in share in Europe by the loss of contracts, which have been compensated with a significant investment in LTE networks for American and Chinese territory, where benefits are expected.
A union would place them very close to Ericsson
It will help us enough to understand how the market is if we take a look at the fees that were handled in 2014 around the world in the networks business, and the thing was so: 30% for Ericsson, 20% for Huawei, Nokia remained at 17%, ZTE is 10% with 11%, and Alcatel.
We must not forget the recent history of Nokia, with the sale of the division of mobile at Microsoft, It has money for such operations. Its operating divisions are currently networks, service maps Here, and a Department in charge of the high-tech and patent management.
The possibility of joining the companies in an agreement is something that they had been considering a decade, and in recent months viewed favorably from France the union between European companies to be competitive globally, following the Franco-German model of Airbus.
As usual in these cases, Alcatel, or Nokia, have wanted to declare nothing more on the subject. It has also contacted Ericsson, current leader of the market, which obviously has little to say on the subject.