Nokia completes sale of handset business to Microsoft Corporation - Chandigarh Tribune

Nokia completes sale of handset business to Microsoft Corporation

Chennai manufacturing plant not a part of the $7.2-billion agreement

New Delhi, April 25

Nokia today completed the sale of its handset business to software giant Microsoft, keeping the Chennai manufacturing plant, one of its largest facilities, out of the deal.

The Finnish handset maker expects the value of the transaction, which was completed after a month's delay, to be slightly higher than the earlier announced 5.44 billion euros (about $7.2 billion) after final adjustments based on the verified closing balance sheet, Nokia said.

The firm had agreed to sell almost all of its Devices and Services (D&S) business to Microsoft in September last.

Welcoming the completion of the deal, Microsoft CEO Satya Nadella reiterated the focus of the Redmond-headquartered firm on a "mobile-first, cloud-first world," according to a statement from the US company.

"With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity," it said.

Nokia said the Chennai manufacturing plant will manufacture devices for Microsoft under a service agreement.

The deal also excludes Nokia's plant in Masan, South Korea, which has about 200 employees and will be closed.

"The company plans to bring to Chennai and Masan elements of its Bridge program, which we have made available for employees affected by company changes in other sites," the firm added.

"Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation," Nadella said.

Former Nokia CEO Stephen Elop will serve as executive vice-president of Microsoft Devices Group and report to Nadella.

Microsoft will honour all Nokia customer warranties for existing devices, beginning April 25. It will absorb about 25,000 employees, who will be transferred globally from Nokia.

India-born Rajeev Suri likely to be new Nokia CEO

As per European media reports, the next Nokia CEO could well be 47-year-old India-born Rajeev Suri, currently the chief executive at Nokia Solutions and Networks. Nokia is expected to make an official decision later on Tuesday when it is scheduled to announce the first quarter results and declare the cash it would pay out to shareholders. — Agencies

Deal dynamics

• Nokia expects the value of the transaction to be slightly higher than the earlier announced about $7.2 bn after final adjustments based on the verified closing balance sheet


• With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 bn annual opportunity


• Nokia said the Chennai manufacturing plant will manufacture devices for Microsoft under a service agreement


• The deal also excludes Nokia's plant in Masan, South Korea, which has about 200 employees and will be closed


• Microsoft will honour all Nokia customer warranties for existing devices, beginning April 25. It will absorb around 25,000 employees, who will be transferred globally from Nokia