Nokia says Microsoft deal to close next month
Nokia said that it now expects its $7.2 billion deal with Microsoft to be completed in April 2014, TechCrunch reported.
Nokia had initially said that the deal would push through in the first quarter of this year but the delay was due to the antitrust authorities in Asia who are still undertaking reviews of the matter. Microsoft had said in a blog post that the merger is "nearing the final stages of our global regulatory approval process," the report said.
In a statement, Nokia said, "Nokia today announced that it now expects the transaction whereby the company will sell substantially all of its Devices & Services business and license its patents to Microsoft to close in April 2014. This compares with Nokia's previous expectation on the transaction closing in the first quarter of 2014, which Nokia communicated when the company first announced the transaction on September 3, 2013. Nokia and Microsoft remain committed to the transaction."
The Finland-based firm added that while both firms are making "good progress related to the closing conditions and integration planning" the deal still needs the approvals of "certain antitrust authorities in Asia which are still conducting their reviews," the statement said.
Since Nokia and Microsoft were not able to merge at the set time, there will be a waiting time before Microsoft can absorb the division and Stephen Elop will also need to be on stand by before he can take the helm of the bigger hardware division of Microsoft. Analysts tracking the deal will also need to overhaul their model, the report said.
Meanwhile, Nokia said its tax issue in India was not the cause of the delay. The statement said, "Nokia reiterates that ongoing tax proceedings in India have no bearing on the timing of the closing or the material deal terms of the anticipated transaction between Nokia and Microsoft."