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Published on 2024-08-30
The mobile networks assets of Finnish company Nokia are reportedly drawing preliminary interest from potential buyers, including South Korean giant Samsung Electronics, according to Bloomberg, which cites unidentified sources with knowledge of the matter.
The Scandinavian company is said to have held talks with advisors about possible options for its mobile networks business, valued at around $10 billion (€8.98 billion), given the competition from larger rivals such as Huawei Technologies. The company is believed to have considered various scenarios, including partial or total sale of the division, as well as spin-off or merger with a rival, sources said.
In this context, they indicated that Samsung has expressed initial interest in purchasing some of Nokia's assets to gain scale in the radio access network segment that connects mobile phones to telecommunications infrastructure, although they noted that any potential divestment could also attract interest from other competitors.
In any case, deliberations are still said to be in the early stages and there is no certainty that Nokia will ultimately decide to proceed with any transaction.
Nokia's mobile networks division supplies base stations, radio technology, and servers to wireless operators worldwide and accounted for around 44% of Nokia's total revenue in the last fiscal year, making it the company's primary business segment. However, its activity has been affected by delays, particularly in Europe, in the costly modernization of networks by telecom operators.
Nokia’s shares were up 5.56% in the final minutes of trading on the Helsinki Stock Exchange, after having gained up to 8.70% during the session. So far this year, the Finnish company's stock price has increased by more than 25%.
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