Nokia one step closer to French deal

 
Madeline Ratcliffe
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NOKIA shareholders were cheered by the news the company has received US regulator approval for its €15.6bn (£11.4bn) takeover of French telecoms giant Alcatel-Lucent.

The deal, announced in April this year, was cleared yesterday by the Committee on Foreign Investment in the United States. With the committee’s approval, and the US Department of Justice’s antitrust clearance earlier this year, the Finnish company has jumped the hurdle of US regulatory approval.

However, the transaction still needs to be approved by other relevant jurisdictions, as well as Nokia shareholders themselves. The companies are aiming to complete in the first half of next year.

If the deal is approved Nokia shareholders will hold over 50 per cent of the share capital of Alcatel-Lucent, having paid a 28 per cent premium on the market price.

It is a change in direction for Nokia, which sold its mobile manufacturing arm to Microsoft in 2013 and is now positioning itself as a provider of mobile technology.