Helsinki - Nokia’s bid for Alcatel-Lucent won unconditional approval from European Union merger watchdogs who predicted growing rivalry with Samsung Electronics in evolving markets for mobile-phone technology.
The transaction to create the biggest maker of equipment that underpins mobile-phone networks won’t prevent tough competition in Europe from Ericsson and Huawei Technologies across the 28-nation EU, the European Commission said in an e-mailed statement on Friday.
Other global competitors such as Samsung and ZTE are on the rise, the regulator said.
“In particular, Samsung is expected to play a more significant role in the near future in relation to the newest generation mobile telecommunications equipment - so-called 4G, currently being deployed, and 5G,” the commission said.
Nokia’s biggest acquisition would result in a supplier that surpasses Ericsson and Huawei in wireless-infrastructure revenue.
Nokia CEO Rajeev Suri will run the enlarged company, which will bolster its position in China, a market of 1.3 billion mobile subscribers, and take on contracts with the two biggest US carriers -- Verizon Communications and AT&T.
Bloomberg