On January 14 this year, Nokia Corporation (ADR) (NYSE:NOK) is ready to form a combined entity with its acquisition of the French-American rival, Alcatel Lucent SA (ADR) (NYSE:ALU).
According to the stock market regulatory body of France, Finnish Telecom giant, Nokia has successfully made the all- share offer for Alcatel-Lucent which was positively accepted on Monday. Nokia has been estimated to gain 80% of control of its rival Alcatel-Lucent.
AMF, the French financial market authority, said in a provisional report that as per the public exchange offer of Nokia, it clearly holds 76% of shares and voting rights. The minimal condition required controlling at least 50% of shares and voting rights have also been fulfilled by Nokia.
As per the French regulator, the offer has been accepted positively and the final report was due Tuesday. This month, the offers in the United States and France will be reopened and February is the time decided for publishing the final results.
Nokia, once the world’s premium mobile manufacturing company, is hoping that the merger will let it become the number one network equipment and service provider in the world.
As a result of Alcatel acquisition, Nokia has the gates opened for its expansion from telecom networks to cloud services and Internet networks. This acquisition has also helped Nokia to stand in a better position to compete with China’s Huawei and Sweden’s Ericsson for telecom network gear.
This huge merger has been estimated to generate revenue of about $27.3 billion.
The President and CEO of Nokia, Rajeev Suri takes immense pleasure to talk about the successful acceptance of the Offer and that Alcatel investors share the same level of confidence in the bright future of the combined company. He also added that he will waste no time in order to combine the two companies and start with the integration plans.
By January 14 this year both the companies will offer a combined end- to- end portfolio of the scale and scope in order to meet the needs of their global customers. A new form of R&D and innovation capabilities will be introduced in order to lead the world in the creation of next- generation services and technology.
The consent to the offer was given in early December by Nokia’s shareholders who have brought fears regarding job cuts in both France and Finland.
For each Alcatel- Lucent share, the Finnish company has offered 0.55 Nokia shares under the public exchange offer on December 23.
Nokia recovered from the financial woes in the year 2015 after selling off its unprofitable handset division to Microsoft in the year 2013.