Finnish telecom equipment manufacturer Nokia is in advanced discussions to buy France-based Alcatel-Lucent. In a joint announcement, the companies have clarified that there can be no certainty at the present stage that the discussions will result in any agreement or transaction. However, industry reports estimate that if the deal materialises, it could help in reducing the costs incurred by both companies.
Analysts and investors believe that such a deal may raise potential opposition from the French government, as it is sensitive about the job cuts arising out of cost-saving takeover deals. It is also being speculated that the deal can help create a new global network equipment group that can rival Sweden?s Ericsson and China?s Huawei Technologies.
Alcatel-Lucent?s current market valuation stands at roughly ?11 billion ($11.63 billion), while Nokia?s valuation is about ?29 billion.
