Nokia Oyj announced that the planned 5.44-billion-euro (7.5-billion dollar) sale of its mobile-phone division to Microsoft Corp. is going to be delayed as the companies are waiting for the Asian regulators approval for the transaction. Still, both companies confirmed that they remain committed to the deal and are confident that the transaction will be finalized.
As reported in the press release of Nokia, both parties “continue to be confident that the transaction will close, resulting in the sale of substantially all of Nokias Devices & Services business to Microsoft, and both companies are working diligently to close the transaction as expeditiously as possible”.
Nokia made an official statement, saying that the deal is expected to be finalized in April instead of by the end of the first quarter of 2014 as originally planned because it is pending approvals from “certain antitrust authorities in Asia”. Nokia and Microsoft have already received most of the required regulatory approvals, including the ones from the European and U.S. Authorities, which are represented by the European Commission and the U.S. Department of Justice.
As Nokia reported in its statement, both companies “continue to make good progress related to the closing conditions and integration planning.” The transaction, however, is still being reviewed by some competition authorities in Asia.
A few months ago Nokia Oyj revealed that it has reached an agreement about selling its mobile-phone unit to Microsoft Corp., which is purchasing the division in question and licensing some patents in attempt to become more competitive to the supremacy of Apple Inc. and Samsung Electronics Co. on the smartphone market. On the other hand, Nokia Oyj plans to shift its attention from mobile phones and become more focused on the wireless-network market.
Nokia Oyj fell by 2.18% in Helsinki by 9:21 GMT to 5.16 euros per share, marking a one-year change of +101.01%. The company is valued at 19.74 billion euros. According to the Financial Times, the 34 analysts offering 12-month price targets for Nokia Oyj have a median target of 5.45 euros, with a high estimate of 8.40 euros and a low estimate of 4.00 euros. The median estimate represents a 3.42% increase from the previous close of 5.27 euros.
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