Nokia Says Completion of Microsoft Deal Is Delayed Until April
Bloomberg News
Nokia Oyj (NOK1V), working to complete the sale of its mobile-phone division to , said the 5.44 billion euro ($7.5 billion) transaction will be delayed until next month as Asian regulators review it.
The companies had previously predicted that the sale would be completed by the end of March. The transaction is pending approvals from 'certain antitrust authorities in Asia,' Espoo, Finland-based Nokia said today in a statement. Nokia said the companies remain committed to the deal.
Microsoft, based in Redmond, Washington, is buying the division and licensing some patents to challenge Apple Inc. and Samsung Electronics Co. (005930)'s dominance of the smartphone market. Nokia is exiting handsets to focus on wireless-network equipment.
Rival mobile-phone makers including Huawei Technologies Co. and Samsung have expressed concern to China that the deal may result in higher patent licensing fees, government officials familiar with the matter said this month. China's Ministry of Commerce is conducting an anti-monopoly review and is likely to approve the deal, the officials said.
Nokia and Microsoft already have approvals from U.S. and European authorities.
Tax disputes with Indian authorities won't affect the timing of the deal's completion or material terms, Nokia said.
Nokia shares fell 3 percent to 5.27 euros in Helsinki on March 21. They have advanced about 80 percent since the deal with Microsoft was announced in September.
To contact the reporter on this story: Ville Heiskanen in Helsinki at vheiskanen@bloomberg.net
To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net Kati Pohjanpalo, Ville Heiskanen
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