Nokia delays closure of sale to Microsoft of smartphone business

Nokia said it has yet to receive antitrust clearances from some countries in Asia

Nokia has delayed to April the sale of its smartphone business to Microsoft as it still hasn't received approvals from certain antitrust authorities in Asia.

Microsoft said in September it plans to acquire Nokia's Devices & Services business, which includes the smartphone and mobile phones businesses, for over US$7 billion. The deal, which also includes licensing of patents by Nokia to Microsoft, was expected to close in the first quarter of this year.

Nokia said Monday the deal had already received most of the required regulatory approvals, including approvals from the European Commission and the U.S. Department of Justice. The two companies continue to make good progress related to the closing conditions and integration planning, Nokia said.

"We are nearing the final stages of our global regulatory approval process -- to date we have received approvals from regulatory authorities in 15 markets on five continents," wrote Microsoft's general counsel Brad Smith in a blog post announcing the delay in closure of the transaction.

A Nokia spokeswoman in India declined to name the countries where Nokia and Microsoft still need antitrust clearance. China has not yet approved the deal, according to sources.

The Competition Commission of India approved the deal in October, as it found that the combination of the two companies will not likely have an "appreciable adverse effect" on competition in the country.(

Nokia's handset factory in Chennai in south India has, however, been frozen by Indian federal authorities in a dispute over taxes for mobile phone software licenses.

The company faces another dispute over unpaid sales tax on phones made at the factory from authorities in the state of Tamil Nadu where the factory is located. Nokia has contested the claim in the local High Court, stating that no sales tax can be levied on exported products. The state government claimed that devices made at the factory were not exported but were instead sold domestically.

Nokia said the delay in closure of the transaction is not linked to the tax issues in India and will not affect the deal terms materially. The Chennai factory won't be included in the transfer to Microsoft for a temporary period if the issue is not resolved before the deal is closed, and will operate as a contract manufacturer to Microsoft, according to sources.

Microsoft said last year it would submit the proposed acquisition for approval in the E.U., U.S., China, India, Brazil, Russia, Canada and other countries.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftsmartphonesMergers and acquisitionsNokiabusiness issuesconsumer electronics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?