Nokia gets Chinese approval for Microsoft deal

HELSINKI — Nokia has received regulatory approval from Chinese authorities to sell its mobile phone unit to Microsoft Corp., removing one of the last major hurdles to the 5.4 billion-euro ($7.3 billion) deal.

The Finnish company said Tuesday that it expects the transaction to close by the end of the month, having acquired the necessary approvals from regulatory bodies including in the U.S., the European Union and other jurisdictions.

Nokia Corp.’s share price jumped 5 percent to close at 5.58 euros on the Helsinki Stock Exchange.

The deal, announced in September, includes the sale to Microsoft of Nokia’s devices and services unit as well as a license to a portfolio of patents. It was originally planned to be completed during the first quarter of the year but was held up because of delays in acquiring regulatory approvals.

Nokia did not comment on whether it still needs approvals from other regulators to complete the deal, but said that it was making good progress and that the global process had “involved a thorough review of Nokia’s patent licensing practices.”

The consent from the Chinese Ministry of Commerce likely was the last major hurdle, according to several analysts.

“This was a great step forward in the deal. It effectively removes the last major obstacle for the acquisition to go through,” said Tim Shepherd from Canalys in Reading, Britain.

Nokia said in a statement that no global authority had challenged its compliance with undertakings related to standard-essential patents “or requested that Nokia make changes to its licensing program or royalty terms.”

In India, Nokia is contesting a legal case in which local authorities want it to pay sales tax on the export of devices made at Nokia’s plant in Chennai. But the company has maintained that the case will not delay the deal with Microsoft.

More in Herald Business Journal

Glitches slow Boeing, SpaceX plans for human spaceflight

Boeing has an issue with its abort system that may cause the spacecraft to “tumble.”

Best foot forward: Ferndale company to make custom shoes easy

Long specializing in insoles, Superfeet is putting 3-D machines in stores to make customized shoes.

Planemaker joins forces with auto-industry supplier Adient

The new venture poses a threat to Zodiac Aerospace and Rockwell Collins

Alaska Airlines has selected destinations for new service from Paine Field. (Alaska Airlines)
Alaska Airlines will fly from Everett to 8 West Coast cities

Two destinations that didn’t make the list were Spokane and Hawaii.

Port of Everett CEO Les Reardanz has been called up and will be spending much of the year away from his office. He is going to Afghanistan. (Dan Bates / The Herald)
Port of Everett CEO reporting for duty — in Afghanistan

Les Reardanz has been called to active duty with the Navy for an eight-month deployment.

Boeing opens new $17 million training center in Auburn

Workers and dignitaries marked the grand opening of the facility Monday.

Trump’s company fights efforts to shed the president’s name

“Our homes are worth more without the Trump name.”

Airbus floats shutdown of A380 superjumbo

The aircraft is so big that some airports had to expand runways to accommodate the 550-seat plane.

Does a hypersonic US reconnaissance plane already exist?

A Skunk Works executive speaks of the top secret aircraft as if it is already in operation.

Most Read