Nokia, Alcatel-Lucent Set to Put Merger to Work

By Dominic Chopping 

Nokia Corp has secured the go-ahead from France's securities watchdog for its 15.6 billion euro ($17 billion) takeover offer for Alcatel-Lucent SA, clearing the way for the integration of the two telecom-equipment suppliers.

Nokia said on the Monday that the companies, which have previously received approval from U.S. and European antitrust regulators for the merger, will start working as an operationally combined group on Jan. 14.

Nokia's deal to buy Alcatel-Lucent, first announced in April last year, aims to lift the merged companies into the same revenue league as market leaders, Ericsson AB of Sweden and Huawei Technologies Co. of China.

Aside from merger-related cost savings, the enlarged company could get more pricing power to negotiate with big customers.

Nokia said it holds 70.52% of Alcatel-Lucent's share capital on a fully diluted basis according to the preliminary results of its successful share offer from France's Autorité des Marchés Financiers. Nokia plans to reopen its offer for the remaining Alcatel-Lucent securities it doesn't already own. If Nokia reaches 95% ownership of Alcatel-Lucent's shares and convertible bonds, it intends to squeeze out the remaining securities.

The deal still requires approval from Nokia shareholders.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

January 04, 2016 03:47 ET (08:47 GMT)

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