Nokia announces to buy Alcatel- Lucent

Finnish telecom network equipment maker Nokia on 16 April 2015 announced acquisition of French telecom network firm Alcatel- Lucent.
This merger will create the world’s largest supplier of telecom equipment’s that powers mobilephone networks by surpassing Ericsson and Huawei.
As part of the deal,

• The merged entity will be called Nokia and current Nokia Chairman Risto Siilasmaa will chair it.
• Nokia will buy Alcatel- Lucent in an all-stock deal valued at 15.6 billion euros ($16.6 billion).
• Nokia is going to give Alcatel-Lucent shareholders 0.55 shares in the merged company for each of their old shares.
• In the combined entity Nokia shareholders will own 66.5 per cent shares of the company and Alcatel- Lucent shareholders will own 33.5 per cent shares.

The deal is likely to be completed in the first half of 2016. The combined company will have a total workforce of about 1.14 lakh employees.

Month: Current Affairs - April, 2015