Nokia has signed a memorandum of understanding with a China government-backed investment company called Huaxin in order to encourage approval of its proposed acquisition of Alcatel-Lucent.
The acquisition has already been approved by U.S. and E.U. antitrust bodies, but is awaiting China’s decision. The joint venture, named Nokia Shanghai Bell, will mirror one Alcatel-Lucent had in place with Huaxin and may facilitate China’s approval of the deal.
Nokia will hold 50% of the company plus one share, and Huaxin will hold the rest. Nokia believes merging with Alcatel-Lucent will allow it to better compete with companies such as Ericsson and ZTE, which also provide network operators with telecommunications equipment.
