Microsoft takes over Nokia in $7.2 bn deal

Nokia on Friday completed the sale of its handset business to software giant Microsoft, while keeping the Chennai manufacturing plant out of the deal due to the problems with the Income Tax Department.

According to a Nokia statement, the value of the transaction, which was completed after a month's delay, is expected to be slightly higher than the earlier announced 5.44 billion euros ( about $ 7.2 billion) after final adjustments based on the verified closing balance sheet.

The Finnish handset maker had agreed to sell almost all of its Devices and Services ( D& S) business to Microsoft in September.

Welcoming the completion of the deal, Microsoft chief executive officer Satya Nadella reiterated the focus of the Redmond- headquartered firm on a mobile- first, cloud- first world, according to a statement from the US company.

With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $ 50 billion annual opportunity, it said.

Nokia said the Chennai plant will manufacture devices for Microsoft under a service agreement. In India, our manufacturing facility is subject to an asset freeze by the Indian tax authorities as a result of ongoing tax proceedings.

Consequently, the facility remains part of Nokia following the closing of the transaction.

The deal also excludes Nokia's plant in Masan, South Korea, which has about 200 employees and will be closed. Amid the uncertainty for our employees in Chennai and because of the planned closure of our facility in Masan, Nokia plans to offer a programme of support, including financial assistance, which would give our employees the chance to explore opportunities outside Nokia starting from a sound financial base.

In association with Mail Today