Nokia Seeks to Challenge Chinese Firms in Alcatel-Lucent Buy

NEW YORK – Low-cost Chinese telecoms equipment firm are now eating up on the market share of other global manufactures. But Nokia just won’t vow to the pressure.

Finnish multinational communications and information technology firm Nokia announced that it is set to acquire Alcatel-Lucent, a French global telcommunications equipment company.

Experts believe Nokia’s takeover of Alcatel-Lucent is part of its effort to challenge Ericsson and become the world’s leading telecoms equipment firm.

The move is also considered as Nokia’s way of bolstering its market share as Chinese firms, such as Huawei and ZTE, challenge the sector on cost.

The deal will give Nokia 66.5% stake while Alcatel-Lucent will have the remaining 33.5% of the new company that will have more than 110,000 staff.

When the transaction is completed the combined company will have a 35% share of the mobile equipment market, sources said.

Players in the global mobile equipment market have been facing weak growth prospects and pressure as Chinese players start introducing low-cost mobile equipment. –