Nokia sees closure of Microsoft deal delayed to April
Tuesday, 25 March 2014 00:00
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Reuters: Nokia does not expect to close the sale of its phone business to Microsoft until April as talks with Asian regulators drag on, it said on Monday, fuelling speculation it may have to make more concessions to get the deal done.
Analysts said the delay meant Nokia, which had expected to close the deal by the end of March, might have to make concessions over the licence fees it will charge on patents that will remain with the Finnish firm after the deal is closed.
Earlier this month, media reports said Google and Samsung Electronics had asked Chinese regulators to ensure the 5.4 billion euro deal between Microsoft and Nokia would not lead to higher licensing fees.
“(The delay) is a bad sign. They have been discussing with authorities for quite a while already, and they still need more time,” said Sami Sarkamies, an analyst at Nordea Markets.
“The biggest risk is in the upside of their patents. It looks like Nokia will have to make bigger concessions to push the deal through.”
Nokia has already received approvals for the deal from the European Commission and the U.S. Department of Justice, but some antitrust authorities in Asia are still conducting their reviews, it said in a statement.
The Finnish firm said both companies remained committed to the transaction, and Microsoft echoed it expected the deal to close next month.
“We are nearing the final stages of our global regulatory approval process,” Brad Smith, Microsoft’s general counsel, said on the company’s website. “Currently we are awaiting approval confirmation in the final markets.”
