Nokia wants to take over a French-American competitor

Finnish Nokia is one of the leaders of the competing telecommunications manufacturer Alcatel-Lucent. The merger would create a group worth over a trillion crowns. However, analysts point out that the French side may not be interested in the acquisition.

In response to speculation in the media, Nokia and Alcatel-Lucent confirm that talks have progressed on the possibility of a full merger, which would take the form of a public offering of Nokia to Alcatel-Lucent, the Finnish company said. She added, however, that during this phase she is not sure whether one of the actual agreements will be reached.

These are two weak games in the industry. They could achieve a certain reduction in costs, the mere combination of two weaker players does not necessarily mean the creation of a game stronger, said analyst Ion-Marc Valahu from Clairinvest.

In addition, analysts and investors warn that the French government could oppose the merged company. It considers telecommunications to be a strategically important sector and is sensitive to job losses, which is often the result of fz. The French Ministry of Economy has not yet come to terms with it.

Nokia is initially responding by saying that it could buy wireless communications activities from Alcatel-Lucent. Shares of both companies are in the spotlight today, and while Nokia weakened this morning, shares of Alcatel-Lucent went up. Trade volumes were above average in both cases.

The mandrel value of Alcatel a day ago was initially around 11 billion euros and the thorn value of Nokia was around 29 billion euros. After a slump, Alcatel’s share price rose 18 percent, while Nokia’s shares fell more than eight percent.

Nokia is the world’s number three in the world market after Ericsson and Germany, Huawei Technologies. Last April, it completed the sale of Microsoft’s mobile phone division for 5.44 billion euros (ie 150 billion K). Nokia has been the world’s largest mobile phone manufacturer since the nineties, and was dropped from the top by South Korean competitor Samsung Electronics.