Nokia hopes to win the approval of China’s regulators with a new joint venture with Chinese investment firm Huaxin.
Sourced through Scoop.it from: www.zdnet.com
Ahead of China’s regulators making a decision on Nokia’s merger with Alcatel-Lucent, the Finnish company has agreed to a joint venture with Chinese investment firm China Huaxin. Under a memorandum of understanding between the pair, Nokia will hold 50 percent plus one share of a joint venture that combines Nokia’s infrastructure businesses in China and Alcatel-Lucent Shanghai Bell. Nokia and Huaxin intend to use the proposed joint venture to speed up regulatory approval in China. Europe, the US and several other national regulators have already approved the proposed €15.6bn merger, leaving China as one of the main hurdles to the union.
Once the deal is finalised, the merged companies will become the world’s second largest network equipment vendor behind Sweden’s Ericsson and ahead of China’s Huawei. The joint venture with China Huaxin — or Huaxin Post & Telecommunication Economy Development Center — is conditional on Nokia closing its merger with Alcatel, said Nokia