Finland Times

 

File Photo Lehtikuva.

Nokia on Monday announced that it received antitrust clearance from the Chinese Ministry of Commerce for its proposed acquisition of Alcatel-Lucent.

 

The clearance in China completes the material antitrust review process required for the transaction, said a press release.

 

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

 

"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,” said President and CEO of Nokia Corporation Rajeev Suri.

 

“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," the CEO continued.

 

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 to combine Nokia's telecommunications infrastructure businesses in China with Alcatel-Lucent Shanghai Bell, said the release.

 

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.