Nokia and Alcatel-Lucent to merge

Nokia and Alcatel-Lucent to combine to create an innovation leader in next generation technology and services for an IP connected world.

Nokia and Alcatel-Lucent announce today their intention to combine to create an innovation leader in next generation technology and services for an IP connected world. The two companies have entered into a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share. The all-share transaction values Alcatel-Lucent at EUR 15.6 billion on a fully diluted basis, corresponding to a fully diluted premium of 34% (equivalent to EUR 4.48 per share), and a premium to shareholders of 28% (equivalent to EUR 4.27 per share) (see Appendix 1), on the unaffected weighted average share price of Alcatel-Lucent for the previous three months. This is based on Nokia’s unaffected closing share price of EUR 7.77 on April 13, 2015.

Each company’s Board of Directors has approved the terms of the proposed transaction, which is expected to close in the first half of 2016. The proposed transaction is subject to approval by Nokia’s shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions.

2 thoughts on “Nokia and Alcatel-Lucent to merge

  1. Not sure why people keep referring to this as a merger – Nokia are buying Alcatel and retiring the name; keeping the HQ in Finland and keeping the Nokia CEO !

    Which I think is a good thing – ALu tied itself in knots trying to pander to the Lucent ego; pretending it wasn’t a French takeover.

  2. Spot on Duncan!

    The Nokia media release refers to the entities “combining” but it is indeed a buy-out.

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