EU to decide on Nokia, AlcaLu deal by 27 July – report – Mobile World Live

EU to decide on Nokia, AlcaLu deal by 27 July – report

22 JUN 2015

EU antitrust regulators are set to rule on Nokia’s proposed acquisition of Alcatel-Lucent by the end of July, according to Reuters.

Nokia reportedly sought EU approval late last week, and the European Commission is to decide on the deal by 27 July.

The proposed deal was cleared by the US Department of Justice last week.

As part of a rigorous process, Nokia secured backing from the French government in April. It has since also gained approval from regulators in Serbia and Brazil.

Reuters reported that the EU will have the option to clear the deal unconditionally, or extend the review period by ten working days to examine what Nokia could offer as concessions in the face of regulatory concerns.

The EC could also launch a bigger investigation if it deems that the deal is significantly reducing competition.

Securing approval in the US was seen as a major hurdle to overcome for both Nokia and Alcatel-Lucent. Both companies have operations in the country, and the deal leaves market leader Ericsson with only one major competitor to deal with, after Huawei’s struggles to gain a foothold in the country.

The deal will also have to go through an approval process in China, where Alcatel-Lucent has a strong presence. Nokia recently faced scrutiny from Chinese regulators as it attempted to approve the sale of its handset business to Microsoft.

According to reports, an Alcatel-Lucent / Nokia combination will replace China’s Huawei as the world’s second largest equipment maker, giving it a 35 per cent market share, pitting it just behind leader Ericsson.

Author

Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

Read more

Related

Tags