Nokia Networks receives antitrust clearance in China ahead of Alcatel-Lucent acquisition

NEW DELHI: Finnish network gear maker Nokia Networks has said that it has received antitrust clearance from the Chinese Ministry of Commerce (MOFCOM) for its proposed acquisition of Alcatel-Lucent. The clearance in China completes the material antitrust review process required for the transaction. The proposed transaction is expected to close in the first half of 2016.

Nokia and Alcatel-Lucent will continue to cooperate with the French government to obtain formal approval from the Ministry of Economy (MINEFI), after which Nokia will proceed with the filing of the previously announced public exchange offer for Alcatel-Lucent securities.

As part of its acquisition of Alcatel-Lucent, Nokia intends to create a joint venture in China with China Huaxin Post & Telecommunication Economy Development Center ("China Huaxin") to combine Nokia's telecommunications infrastructure businesses in China with Alcatel-Lucent Shanghai Bell ("ASB").

As announced on August 28, 2015, Nokia has signed a Memorandum of Understanding with China Huaxin, under which Nokia would hold 50% plus one share in the new joint venture, which would operate under the English name Nokia Shanghai Bell.

"We are pleased to have received clearance from MOFCOM for our proposed acquisition of Alcatel-Lucent. Completion of the material antitrust reviews is another significant milestone in the transaction, as we ready ourselves for operating as a combined company. Through Nokia Shanghai Bell, we look forward to maintaining our deep commitment to China and playing a key role in the country's shift towards an innovation-driven economy," said Rajeev Suri, President and CEO of Nokia Corporation.