Nokia confirms €15.6bn Alcatel takeover
Nokia has confirmed plans to buy French telecoms giant Alcatel-Lucent for €15.6bn (£11.3bn).
The Finnish company said it had offered 0.55 new shares in Nokia worth €4.27 each per Alcatel share, representing a 28 per cent premium over Alcatel's average share price over the last three months.
The two sides said combining their businesses will create an "innovation leader in next generation technology and services for an IP connected world".
It's a massive change in direction for Nokia, which sold its mobile manufacturing arm to Microsoft in 2013. The company is increasingly positioning itself as one of the world's largest providers of mobile technology.
The companies added they're targeting €900m of cost synergies by 2019, alongside €200m in reduced interest payments by 2017. Nokia said the companies have "highly complementary portfolios and geographies, with particular strength in the United States, China, Europe and Asia-Pacific".
Rajeev Suri, Nokia's president and chief executive, said the merger will "bring together the R&D engine of Nokia with that of Alcatel-Lucent and its iconic Bell Labs".
We have hugely complementary technologies and the comprehensive portfolio necessary to enable the internet of things and transition to the cloud. We will have a strong presence in every part of the world, including leading positions in the United States and China.
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