Nokia gets Chinese approval to sell phone business to Microsoft

Published April 8, 2014
A man uses the camera of a Nokia Lumia 820 smartphone as he poses in this photo illustration taken in the central Bosnian town of Zenica, September 3, 2013. — Reuters Photo
A man uses the camera of a Nokia Lumia 820 smartphone as he poses in this photo illustration taken in the central Bosnian town of Zenica, September 3, 2013. — Reuters Photo

HELSINKI: Nokia has received approval from Chinese authorities to sell its mobile phone business to Microsoft Corp, it said on Tuesday, and added there had been no request for it to change its patent practices.

Nokia agreed in September to sell the business to Microsoft in a 5.4 billion euro ($7.4 billion) deal. However, the Finnish company kept its patent portfolio, which is seen by analysts as a promising source of future growth.

Nokia said that it still expected the Microsoft deal to close in April.

"Nokia and Microsoft have now received regulatory approvals from the People's Republic of China, the European Commission, the US Department of Justice and numerous other jurisdictions,"

Nokia said in a statement.

Nokia shares rose 2.9 percent to 5.48 euros after the approval was announced.

As a phone maker, Nokia has paid rivals for the use of their technology licenses as well as charging for its own. A newly restructured Nokia would be freer to push up those fees, analysts say.

Google and Samsung had asked Chinese regulators to ensure that the deal with Microsoft would not lead to higher licensing fees, according to media reports.

But Nokia said that it had not been accused of unfair practices regarding its patents.

"No authority has challenged Nokia's compliance with its ... undertakings related to standard-essential patents or requested that Nokia make changes to its licensing program or royalty terms," it said in the statement.

Opinion

Editorial

Hasty transition
Updated 05 May, 2024

Hasty transition

Ostensibly, the aim is to exert greater control over social media and to gain more power to crack down on activists, dissidents and journalists.
One small step…
05 May, 2024

One small step…

THERE is some good news for the nation from the heavens above. On Friday, Pakistan managed to dispatch a lunar...
Not out of the woods
05 May, 2024

Not out of the woods

PAKISTAN’S economic vitals might be showing some signs of improvement, but the country is not yet out of danger....
Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...