VIDEO – The transaction values the Franco-American group to 15.6 billion euros. The headquarters of the new entity, which will take the name of Nokia Corporation, Finland will be installed but the band promises to maintain a strong presence in France.
That was only a Tuesday draft becomes a formal merger. The group of Finnish telecom Nokia announced Wednesday his marriage with his Franco-American rival Alcatel-Lucent “to create a leading provider of innovative technologies.” The transaction, which was approved by each board, expected to close in the first half of 2016. The new company will be called Nokia Corporation, with headquarters in Finland “and a strong presence in France,” promises Alcatel Lucent in a statement.
Specifically, Nokia will offer 0.55 of its shares for each Alcatel-Lucent share, which values the Franco-American group to 15.6 billion euros. Shareholders of Alcatel-Lucent would hold 33.5% stake in the new group and 66.5% of Nokia shareholders. This new telecom giant will be headed by a Finnish tandem Risto Siilasmaa be appointed Chairman of the Board and Rajeev Suri, CEO. “The Board of Directors will consist of nine or ten members, including three directors of Alcatel-Lucent, the vice president of the board,” the statement said.
Both groups provide that “the new set will have” an unprecedented innovation capacity “with about 40,000 employees in R & amp; D and annual expenditures of 4.7 billion euros in R & amp; D in 2014. “Together, Alcatel-Lucent and Nokia intend to be pioneers in technology and next-generation network services and will be able to offer seamless connectivity seamlessly and without limit,” provides the current CEO of Nokia, Rajeev Suri. Michel Combes, CEO of Alcatel-Lucent, for his part said that “the merger of Nokia and Alcatel-Lucent will provide a unique opportunity to create a European champion and a global leader in access to ultra speaker speed, IP networks and applications in the cloud. ”
The new company is about 900 million of operational synergies in 2019 and save about 200 million euros in interest expense in 2017. Nokia also states that it “looks strategic options “for its HERE mapping activity, opening the way to a sale, even if the final decision was not taken. “The new entity should have a strong balance sheet with net cash of 7.4 billion euros at December 31, 2014,” the statement said.
“Nokia s ‘also expects France to become a hub of the new entity “
The two groups also undertake to make France” where Alcatel-Lucent is a key player the technology ecosystem, “the” nerve center of the new group. ” According to the statement, “Nokia intends to maintain employment in France at what it will be after the Shift plan Alcatel-Lucent (the latest restructuring plan, Ed), with special attention at key sites Villarceaux (Essonne) and Lannion (Côtes d’Armor). In addition, the company plans to expand employment in R & amp; D with the creation of several hundred young graduates with the skills positions in future technologies, including 5G. To ensure continuity of customer support, the service functions before and after-sales will also be maintained, “said the latter.
Nokia Corporation is also considering the creation of a center of excellence R & amp; D 5G and the opening of a Cyber-security laboratory in France. The group will also launch an investment fund of $ 100 million to invest in start-ups in France with a focus on the Internet of Things and Internet Industrial.
On Tuesday, Michel Combes and Rajeev Suri had been received by Francois Hollande, who wanted firm commitments on maintaining employment in France. Following this meeting, the government had expressed his relief: “There will be no job losses in France. The number of jobs will be the same and even more. We had all the commitments on the part of Nokia “, stressed the Minister of Economy Emmanuel Macron
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