Chinese Ministry of Commerce has approved a Nokia’s acquisition of telecommunications equipment manufacturer Alcatel-Lucent. The transaction amount is estimated at 15.6 billion euros. This is stated in a press release of the Finnish company.
Now companies need to obtain formal approval from the Ministry of the French economy. Unofficially, the agency has already approved the deal. After receiving all the necessary permits Nokia has made a formal offer to purchase Alcatel-Lucent. Nokia shareholders will have to approve the deal. The parties plan to complete it in the first half of 2016.
“We are pleased that the Ministry of Commerce of China has approved the acquisition of Alcatel-Lucent”, press release read the statement of the president and director general of Nokia Rajeev Suri.
Memorandum of the merger of Nokia and the network equipment maker Alcatel-Lucent was signed in April 2015.
According to the deal, Alcatel shareholders will receive a premium of 28% of the average share price over the past three months and 0.55 shares of the combined company for one paper Alcatel. The combined company will be called Nokia Corporation, Nokia’s share in it will make 66,5%, Alcatel – 33,5%. In July, the deal was approved by the European Commission.