Nokia is in the process of buying Alcatel-Lucent in a deal worth $16.6 billion and now the deals has received approval by the European regulators.
The news of the deals approval was announced last week and the European Commission has approved the deal under Eu Merger regulation.
The European Commission has approved under the EU Merger Regulation the proposed acquisition of Alcatel-Lucent by Nokia. Both companies are global providers of telecommunications equipment and related services. The Commission concluded that the transaction would not raise competition concerns, in particular because the parties are not close competitors and since a number of strong global competitors will remain active after the transaction.
The Commission assessed the effects of the transaction on competition in the field of mobile network equipment, including Radio Access Network equipment (for connecting mobile devices to networks) and Core Network Systems (that for example route telephone calls and data traffic). The Commission found that, despite the merged entity having combined market shares around or above 30% for several specific types of equipment, the overlaps between the two companies’ activities are effectively limited. Indeed, Nokia has a strong presence in the European Economic Area, where Alcatel-Lucent is a small player, and conversely Alcatel-Lucent has a strong presence in North America, where Nokia’s activities are rather limited.
You can find out more details about the deal between the two companies at the link below.
Source European CommissionFiled Under: Technology News