Finland-based network equipment maker Nokia has finalised a merger deal with Alcatel-Lucent for $16.58 billion.
As part of the buyout deal, Alcatel-Lucent shareholders are proposed to own 33.5 per cent of the fully diluted share capital of the combined company – Nokia Corporation; meanwhile Nokia shareholders would own 66.5 per cent of the share capital, if going forward the public exchange offer is fully taken up. The merger deal is expected to be finalised in the first half of 2016.
Post merger, the company is expected to have about 114,000 employees and combined sales of about 26 billion euros. The deal is expected to help both Nokia and Alcatel-Lucent to compete more aggressively with Sweden-based equipment maker Ericsson. According to Bernstein Research, post merger the combined entity will have a global wireless market share of 35 per cent, second only to Ericsson which has 40 per cent market share, and ahead of China’s Huawei which has 20 per cent market share.
