Microsoft Completes £4.6bn Nokia Handset Takeover
Nokia exits the mobile phone market as Microsoft deal is confirmed
Microsoft has completed the £4.6 billion acquisition of Nokia’s devices and services business, marking the end of the Finnish firm’s long history of mobile phone manufacturing.
The deal, first announced in September 2013, has now received all the required regulatory approval from government agencies around the world and will see Nokia’s mobile business become part of a wider device unit within Microsoft.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Nokia Microsoft deal completed
The new unit will be headed up by former Nokia CEO Stephen Elop, who is now executive vice president of the Microsoft Devices Group, which comprises Lumia smartphones and tablets, Nokia mobile phones, Surface tablets and Xbox gaming consoles. He will report directly to Nadella.
There have been some minor adjustments to the deal, with Nokia claiming that it could now be worth slightly more than the £4.6 billion figure reported last year. Earlier this week, it emerged that Nokia’s Chennai manufacturing plant would not be part of the transaction as it is currently subjected to an asset freeze due to ongoing tax proceedings in India.
Instead, the factory will work as a contract manufacturer for Microsoft, while another plant in South Korea will be shut down.
Although it has now exited the mobile phone market, Nokia retains its Here Maps, advanced technology and network solutions businesses, while the interim management team installed last year will remain in charge until further notice.
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