Chinese Ministry of Commerce (MOFCOM) has approved Nokia’s proposed acquisition of Alcatel-Lucent with certain conditions. The clearance in China completes the material antitrust review process required for the transaction. Nokia estimated the transaction value would hit 15.6 billion euros.
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. Once the offer period opens, the proposed transaction will remain subject to approval by Nokia shareholders and the successful closing of the exchange offer, and is expected to close in the first half of 2016.
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.
