This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nokia Gains China Clearance for Microsoft Deal

NEW YORK (The Deal) -- Finland's Nokia (NOK - Get Report) said Tuesday it had obtained Chinese regulatory clearance for its handset and patents sale to Microsoft (MSFT - Get Report), setting the companies on track to close the 5.44 billion ($7.5 billion) deal later this month.

Nokia on March 24 pushed back the expected completion date of the September deal to April from the first quarter, noting that the companies still needed approval in unspecified Asian markets. The transaction already had clearance in jurisdictions including the U.S. and European Union.

"We believe that China approval was proving to be the major delaying factor for the deal and hence that the announcement today puts the deal back on track to close during April 2014 as we continue to see no anti-competitive reasons to block the deal," Credit Suisse Group analysts noted. "While the company has not provided details around which other regions still need to approve the deal we believe this could be Taiwan and/or Korea."

Nokia said that in the regulatory process to date, no officials had requested it make changes to its patent licensing program or royalty terms. Nokia shares were up 0.115, or 2.2%, at 5.435 by early afternoon in Helsinki. Its shares have risen about 80% since the September Microsoft deal, which Credit Suisse analysts said will make the Finnish company "cash-rich and IP-driven."

Must Read: JPMorgan Sees Parallel to Subprime Bust at Regional Banks

Nokia has said it will return "excess capital" to shareholders after completing a review of its three remaining businesses.

Microsoft, for its part, wants to use the handset purchase to become a late protagonist in the smartphone revolution.

Former Nokia CEO Steven Elop is transferring to Microsoft as part of the deal. Nokia chairman Risto Siilasmaa on Sept. 3 became Elop's interim replacement.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NOK $5.82 -1.85%
MSFT $49.78 -1.64%
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs