Speculation over Ericsson's future strategy has intensified following Nokia's announcement this week that it plans to buy Alcatel-Lucent, with some saying the Sweden-based vendor will be forced to expand its fixed-line business.
Nokia's $16.6 billion deal to acquire Alcatel-Lucent would bring together two large network vendors that have each gone through major mergers of their own that have been difficult, to say the least. Although the companies' leaders are defending the deal, some analysts are skeptical that the firms can pull off such a merger without major integration headaches.
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Nokia announced today that it will purchase Alcatel-Lucent (NYSE: ALU) for $16.6 billion. The deal will reestablish the European vendor's presence in the wireline space, an area that it largely left behind in recent years to solely focus on wireless.
Nokia agreed to purchase Alcatel-Lucent in a $16.6 billion (€15.6 billion) deal that would form a powerhouse to rival Ericsson and Huawei in the global market for telecom equipment. In the United States, the deal could create a company that could challenge Ericsson's leading position.
Nokia said it is to buy Alcatel-Lucent in a deal that values the France-based company at €15.6 billion ($16.6 billion) and creates a new European powerhouse in the telecoms equipment market.
Just a day after announcing they were in "advanced discussions with respect to a potential full combination," Nokia and Alcatel-Lucent on Wednesday revealed full details of their plans to combine under the Nokia brand, with headquarters in Finland, a strong presence in France and Nokia boss Rajeev Suri as CEO.
Nokia confirmed reports that it is in advanced talks to purchase rival Alcatel-Lucent. The combined company would create a telecom power player better equipped to compete with market leader Ericsson and Chinese rivals Huawei and ZTE.
Nokia and Alcatel-Lucent confirmed they are in talks for Nokia to acquire Alcatel-Lucent in a merger that could give the combined company more fighting weight against Ericsson and Huawei in the network gear market. According to research firm IDC, the combined company would become the world's largest wireless network equipment vendor.
Nokia is considering selling its HERE mapping unit to focus more on wireless network gear, according to multiple reports.