Former Finnish phone giant Nokia has admitted it has plans to acquire its French competitor Alcatel-Lucent, after several newspapers revealed the news yesterday.
40 billion euro market value
The take-over talks are already in an advanced stage, but no agreement has been reached so far. Nokia has refused to mention the size of the possible payment or the reasons for the acquisition: it only confirmed it would soon make a public offer and only then it will communicate about its intentions.
The combined company has a 40 billion euro market value and that means the French government might intervene as it usually does not really like foreign acquisitions of French companies.
For a long time, Nokia used to be the world's biggest cellphone manufacturer, but once smartphones came into view, the company crumbled. In April 2014, it sold its mobile phone division to Microsoft for 5.4 billion euro and it seems it has now found renewed faith to step into that market once more.