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Nokia China and Alcatel-Lucent Shanghai Bell to create joint venture

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Staff writer ▼ | August 29, 2015
Nokia and China Huaxin Post & Telecommunication Economy Development Center (China Huaxin) have signed a memorandum of understanding to combine Nokia's telecommunications infrastructure businesses in China (Nokia China) and Alcatel-Lucent Shanghai Bell (ASB) into a new joint venture.
Alcatel-Lucent Shanghai Bell
Technology   Nokia Shanghai Bell to be registered in Shanghai Pilot Free Trade Zone
As agreed under the MoU, Nokia expects to hold 50% plus one share in the new joint venture, with China Huaxin holding the remaining shares. Fair value compensation would be received for the contribution of relevant assets to the joint venture.

The new joint venture is conditional on and would be formed after the closing of Nokia's planned combination with Alcatel-Lucent, at which point Nokia would own 50% plus one share of ASB.

The new joint venture is expected to be a strong national asset based in China capable of delivering value for both parties. Nokia China and ASB are leaders in the Chinese telecommunications infrastructure market and both are long-standing contributors to the development of China and innovation in the country.

The new joint venture is planned to operate under the English name of Nokia Shanghai Bell and would be registered in the China (Shanghai) Pilot Free Trade Zone.

The new joint venture would have one board of directors, one management team, unified customer and business functions, and one integrated product portfolio and R&D platform.