Nokia made an official announcement today that its deal with Microsoft Corp. over the acquisition of its handset unit for 5.4 billion euros (7.4 billion dollars) was approved by regulators in China. The company also announced that Chinese regulators had not requested from it to change its patent practices.
As reported by Reuters, Nokia said in its statement: “Nokia and Microsoft have now received regulatory approvals from the Peoples Republic of China, the European Commission, the U.S. Department of Justice and numerous other jurisdictions. No authority has challenged Nokias compliance with its (…) undertakings related to standard-essential patents or requested that Nokia make changes to its licensing program or royalty terms.”
The company made a press release on Tuesday, which was cited by the Financial Times: “The regulatory approval process has involved a thorough review of Nokias patent licensing practices by several competition authorities around the world. During that process, no authority has challenged Nokias compliance with its FRAND undertakings related to standard-essential patents (licensing on fair, reasonable and non-discriminatory terms) or requested that Nokia make changes to its licensing program or royalty terms.”
The deal is expected to be finalized until the end of April this year.
The acquisition of companys phone unit by Microsoft Corp. may provide Nokia with the opportunity to focus on its wireless-networks business. The deal is also considered beneficial for Microsoft as well, because the latter may become a worthy competitor of mobile communications companies such as Apple Inc., Samsung Electronics Co. and Google Inc.
The phone manufacturer has paid rivals in order to use their technology licenses, while also charging for its own.
According to Financial Times, shares of Nokia surged 1.88% to 5.42 EUR on the Helsinki Stock Exchange, while companys one-year return rate was 116.93%. The same media also reported that the 34 analysts offering 12-month price targets for Nokia have a median target of 5.45, with a high estimate of 8.40 and a low estimate of 4.00. The median estimate represents a 2.44% increase from the last price of 5.32.
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