Following the approval of the merger between Nokia Corporation (ADR) (NYSE:NOK) and Alcatel Lucent SA (ADR) (NYSE:ALU) by the respective shareholders, the time has come to put together to transform into work. That means the integrated company will start working from January 14. The Merger deal was worth $17 billion or Euro 15.6 billion and got the regulatory nod from France’s watchdog. The merger deal also passed the anti-trust regulation in the United States, as well as, the European Union. That will also mean that investors of both the companies can see the first full quarterly results of the amalgamated companies in April.
More Leverage To Negotiate With Big Clients
In April last year, Nokia Corporation (ADR) (NYSE:NOK) revealed its deal to acquire Alcatel Lucent SA (ADR) (NYSE:ALU) with the objective of competing with the leaders like Huawei Technologies Company of China, AB of Sweden, and Ericsson (ADR) (NASDAQ:ERIC). Apart from the cost savings from the merger, the integrated and enlarged firm might also enjoy a greater influence in dictating the pricing. That would undoubtedly help to negotiate to win contracts with the large customers.
Nokia Corporation (ADR) (NYSE:NOK) is enjoying the 70.52% ownership in Alcatel Lucent SA (ADR) (NYSE:ALU) on a fully diluted basis. France’s Autorite des Marches Financiers disclosed this in preliminary results following the completion of the successful share offer.
Plans Are Afoot To Buy Remaining Shares
Nokia Corporation (ADR) (NYSE:NOK) has also made its intentions clear by planning to re-launch its offer to acquire the remaining stake in Alcatel Lucent SA (ADR) (NYSE:ALU), which it did not hold. The Finnish firm also indicated that if it could get 95% of the ownership in Alcatel shares, as well as, convertible bonds, then it would pinch for the remaining securities.
Before the smartphone came into the market, both the companies were enjoying a solid market in the Americas, as well as, the rest of the world. However, the competition and the rapid growth have dragged down the financial numbers of both the companies. Now, the integrated company is facing a tough task of meeting the customer requirements and tops the investors’ expectations.
