Microsoft completes Nokia acquisition, Chennai plant to remain alive

Microsoft completes Nokia acquisition, Chennai plant to remain alive

As expected, Microsoft today finally announced that it has completed the acquisition of Nokia Devices and Services business. Though the transaction worth $7.2 billion is now closed, Nokia’s Chennai manufacturing plant will remain be available with the Finnish company.

Satya Nadella with Stephen Elop after Microsoft completes Nokia acquisition

Microsoft completes Nokia acquisition (In Picture: Satya Nadella with Stephen Elop)

Microsoft originally announced the acquisition of Nokia Devices and Services business in September 2013 and nearly after passing seven months, the acquisition has been approved by Nokia shareholders and by governmental regulatory agencies across the globe.

On announcing the completion of acquisition, Satya Nadella, CEO, Microsoft, said;

“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation. Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”

The new move will not only change the operational structure of Nokia handset unit but also result some major changes in the top-level management of both the companies as former Nokia President and CEO Stephen Elop will now report to Nadella and serve as executive vice president of the Microsoft Devices Group to oversee an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products and accessories.

In an open letter, Elop said;

“At our core, we are passionate about building technology that will change the world. From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, we have empowered generations. But we could not have achieved any of this without our fans around the world.”

In separate press statements, Nokia and Microsoft said that as with any multinational agreement of this size, scale and complexity, both the companies have made certain adjustments to the scope of the assets originally planned to transfer. According to adjustments, Nokia’s factory in Masan, South Korea will not be acquired by Microsoft although the factory will be closed by the smartphone maker itself.

Additionally, the Chennai manufacturing plant will also stay with Nokia due to the tax liens on Nokia’s assets in India that prevent transfer. As a result, Microsoft will welcome approximately 25,000 transferring employees from around the world.

The convertible bonds issued by Nokia to Microsoft following the announcement of the transaction have been redeemed and netted against the deal proceeds by the amount of principal and accrued interest.

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