Nokia buys Alcatel-Lucent to grow in telecom gear

IT'S HAPPENING: The takeover will help the companies better take on mobile leader Sweden's Ericsson and cut costs amid weak growth prospects in the telecom gear industry.

HELSINKI/PARIS: Finnish telecom network equipment maker Nokia has agreed to buy Alcatel-Lucent in an all-share transaction that values its smaller French rival at €15.6bil (RM61.32bil). 

Nokia will give Alcatel-Lucent shareholders 0.55 shares in the combined company for each of their old shares, resulting in 33.5% of the entity being in Alcatel's hands and Nokia having 66.5% if the public exchange offer is fully taken up.