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Nokia in Talks Surrounding Merger With French Rival

Nokia in Talks Surrounding Merger With French Rival

Last week, Shell revealed its plans to acquire BG Group in a deal worth £47 billion that would lead to the creation of a £200 billion company. This sparked much talk about the increased merger and acquisition activity that has occurred in the first quarter of 2014. Following this, it has been discovered today that Nokia are in talks with French rival Alcatel-Lucent about a potential merger that could result in a European telecoms equipment group worth more than 40 billion EUR. It is one year since Nokia’s failing handset business was purchased by Microsoft.

Alcatel’s shares were up almost 11 per cent to 4.28EUR on the Paris stock exchange his morning, whilst Nokia’s shares fell 6 per cent in Helsinki to 7.25EUR. Experts have expressed that the two companies, who announced together that the deal was in no way certain at this stage, may be met with opposition by the France’s government as they would not be enthusiastic about job cuts in he communications industry which is one they view as strategic.

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