Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves Nokia, Alcatel-Lucent merger, (Jul 24, 2015)
Organizations Mentioned:Alcatel-Lucent S.A. | Nokia Corp. | Nokia Corp.FI | U.S. Department of Justice
By Greg Hammond, J.D.
The European Commission (EC) has approved Nokia Corp.’s proposed acquisition of Alcatel-Lucent S.A. without conditions, finding that the transaction would not raise competition concerns. The parties were not close competitors and various strong global competitors will remain active after the transaction closes, the EC announced today.
Nokia is a global provider of mobile network equipment and network service platforms and also provides professional services to telecommunications network operators and service providers. Similarly, Alcatel-Lucent provides fixed and mobile network equipment, along with related services to telecommunications network operators.
Although the merged entity would have combined market shares of approximately 30 percent for several types of equipment, the EC found that the overlaps of the two companies’ activities are effectively limited. While Nokia has a strong presence in the European Economic Area, Alcatel-Lucent is only a small player. Likewise, while Alcatel-Lucent has a strong presence in North America, Nokia’s activities are limited there.
The EC also concluded that there are multiple other strong players that are active on the market and that would remain after the proposed transaction closes, including Ericsson and Huawei, which along with Nokia are the main players in Europe, as well as Chinese ZTE and Korean Samsung. Lastly, the EC concluded that the acquisition would not significantly change the market structure such that coordination would be easier, given the importance of technological innovation and a lack of transparency in the markets at issue.
The EC’s announcement comes after the U.S. Department of Justice granted early termination of the U.S. antitrust waiting period for the Nokia, Alcatel-Lucent merger, along with antitrust clearances in Brazil and Serbia. Nokia has now confirmed that it has additionally received clearances from Albania, Canada, Columbia, and Russia.
Nokia notes that the transaction remains subject to approval by Nokia shareholders and receipt of other regulatory approvals. The company expects the transaction to close in the first half of 2016.
Companies: Nokia Corp.; Alcatel-Lucent S.A.
News: AcquisitionsMergers Antitrust