• France's news in English

Nokia to buy France's Alcatel-Lucent for €15.6b

AFP · 15 Apr 2015, 09:07

Published: 15 Apr 2015 09:07 GMT+02:00

Facebook Twitter Google+ reddit
The Finnish telecom giant has agreed to give shareholders in its Franco-American rival 0.55 shares in the new merged company for every one of their own.
The new group "will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are," Nokia's statement said.
It will go by the name Nokia, be based in Finland, and be run by Nokia's current management team, it said.
Shares in the French telecommunications company plunged more than 10 percent on Paris's stock market within ten minutes of the announcement -  dropping 10.51 percent to 4.01 euros, far underperforming the overall market which was trading down 0.17 percent.
The group is targeting savings of 900 million euros ($960 million) in costs by the end of 2019 without further job cuts following the restructuring, both companies said, adding that the merger should save an additional €200 million in financial charges.
Alcatel-Lucent boss Michel Combes, told French TV channel BFM Business that the new group was committed to "increasing R&D activities in France by 25 percent" by hiring 500 additional researchers, bringing the total research and development workforce in the country to 2,500.
"The new group's innovation and research capabilities on a global scale will be spearheaded in France," he said.
The French government said Tuesday it was concerned about jobs disappearing in France if the merger were to go through.
Rumours have swirled since December of a possible deal between the two firms, with France's Les Echos reporting on Monday that executives had been in negotiations since January.
Nokia was the world's biggest mobile phone maker for more than a decade until it was overtaken by South Korea's Samsung in 2012.
Story continues below…
Then in 2014, Nokia sold its mobile phone and tablet division to US software giant Microsoft, and the company now develops mobile and Internet network infrastructures for operators.
Nokia is now set for a significant boost in market share.
The deal will also help Nokia bolster its mobile infrastructure business against Swedish arch-rival Ericsson and China's Huawei, profiting from Alcatel's position as a leading supplier of 4G and LTE mobile networks and related services.
Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
How life for expats in France has changed over the years
A market in Eymet, southwestern France. Photo: AFP

Foreigners in France explain how life has changed over the years.

London calling for Calais youths, but only a chosen few
Photo: AFP

Dozens of Calais minors are still hanging their hopes on help from the UK, but not all will be so lucky.

17 different ways to talk about sex in French
Photo: Helga Weber/Flickr

Fancy a quick run with the one-legged man?

Yikes! This is what a rat-infested French jail looks like
Photo: YouTube/France Bleu TV.

This video is not for sufferers of ratophobia (or musophobia as the condition is officially called).

France to allow Baby Jesus in Town Halls this Christmas
Photo: AFP

Mary, Joseph, and baby Jesus are safe to go on display again this year, it seems.

National Front posts locations of migrants in French town
The National Front courts controversy. Photo: AFP

"Local tax payers have a right to know," says local far-right party chief.

Paris thieves use tear gas to steal €500,000 of watches
Photo: AFP

The thieves pretended to be couriers then threatened staff with tear gas to get the watches.

Bataclan survivor recounts attack in chilling drawings
Photo: BFMTV screengrab

One survivor has recounted the horrific night through illustrations.

Anger among French police grows as Hollande vows talks
French police demonstrate on the Champs Elysées. Photo: AFP

A fourth night of protests shows government efforts to ease anger among French police have been fruitless.

UK border must move back, says 'next French president'
Photo: AFP

If favourite Alain Juppé is elected, Britain and France are in for some difficult negotiations.

Sponsored Article
How to vote absentee from abroad in the US elections
Why Toulouse is THE place to be in France right now
Sponsored Article
Last chance to vote absentee in the US elections
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Sponsored Article
How to vote absentee from abroad in the US elections
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
Welcome to the flipside: 'I'm not living the dream in France'
Do the French really still eat frogs' legs?
French 'delicacies' foreigners really find hard to stomach
French are the 'world's most pessimistic' about the future
Why the French should not be gloomy about the future
This is the most useful French lesson you will ever have. How to get angry
Why is there a giant clitoris in a field in southern France?
French pastry wars: Pain au chocolat versus chocolatine
Countdown: The ten dishes the French love the most
Expats or immigrants in France: Is there a difference?
How the French reinvented dozens of English words
The ups and downs of being both French and English
How Brexit vote has changed life for expats in France
Twelve French insults we'd love to have in English
What's on in France: Ten of the best events in October
jobs available