Nokia is set to become the biggest telecoms equipment company in the world with the announced acquisition of Alcatel-Lucent.
The Finnish company has been repositioning itself as a major player in the telecommunication infrastructure field ever since it sold off its mobile phone arm to Microsoft last year for €5.44 billion.
Now Nokia has announced its biggest move yet to that end. Following recent rumours, the company has announced that it intends to acquire Alcatel-Lucent for the equivalent of £11.2 billion.
According to a company statement, "The combined company will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are."
Nokia sees this combined company as being uniquely positioned to build the foundation for the super-connected world of tomorrow. And yes, the Internet of Things gets a mention at this point, as well as 5G and the cloud.
While Nokia talks of combining the two companies, but it seems the Nokia brand will be used across both. However, Alcatel-Lucent's Bell Labs research and development lab will retain its name and distinct status.
Alcatel-Lucent's CEO Michel Combes reckons that "A combination of Nokia and Alcatel-Lucent will offer a unique opportunity to create a European champion and global leader in ultra-broadband, IP networking and cloud applications."
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The acquisition is expected to close in the first half of 2016.
In the same statement, Nokia announced that it was looking into the possibility of selling its Here mapping business.