Microsoft was elated after it received an approval from all governmental regulatory agencies across the world and Nokia’s shareholders to complete Nokia’s full and long pending acquisition. The Finnish giant completed the transfer of its devices and services business to Microsoft, leaving Indian and South Korean facilities out of the deal. The takeover was completed earlier this year but was delayed by a hold-up in regulatory approvals. Following the receiving of the nod, Microsoft is likely to proceed with implementing Nokia’s Devices and Services unit into its own business.
Microsoft completes Nokia Devices and Services division purchase
Microsoft’s $7.2 billion takeover comes with 2 major adjustments
- A manufacturing unit in Chennai, India, subject to an asset freeze by Indian tax authorities has been kept out of the deal.
- Masan plant in South Korea that is likely to be shut down is also omitted from the deal.
Microsoft said with a firm conviction that the above adjustments bear no impact on the deal and Nokia will be materially compensated for any retained liabilities. The Finnish company will be entrusted with the responsibility of focussing on networks, mapping services and technology development and licences.
Microsoft’s India-born Chief Executive Satya Nadella said, “On Friday, we welcome the Nokia devices and services business to our family. The mobile capabilities and assets they bring will advance our transformation.”
The new Nokia can now go forward and concentrate on its remaining assets. It has one of the best IPR (intellectual property rights) assets in the entire industry and it has good mapping services”, said Neil Mawston from Strategy Analytics, near London.
As per the details available with us, former Nokia CEO Stephen Elop will serve as executive vice-president of the Microsoft Devices Unit that will include Nokia’s former Lumia smartphones and tablets.