BRUSSELS (dpa-AFX) - The European Commission Friday said it has approved the proposed acquisition of Alcatel-Lucent by Nokia, under the EU Merger Regulation. Both companies are global providers of telecommunications equipment and related services.
The Commission concluded that the transaction would not raise competition concerns, in particular because the parties are not close competitors and since a number of strong global competitors will remain active after the transaction.
The Commission assessed the effects of the transaction on competition in the field of mobile network equipment, including Radio Access Network equipment - for connecting mobile devices to networks, and Core Network Systems - that routes telephone calls and data traffic.
The Commission found that, despite the merged entity having combined market shares around or above 30 percent for several specific types of equipment, the overlaps between the two companies' activities are effectively limited. Nokia has a strong presence in the European Economic Area, where Alcatel-Lucent is a small player, and conversely Alcatel-Lucent has a strong presence in North America, where Nokia's activities are rather limited.
The Commission's investigation did not find that the transaction would make it harder for new or small players to enter and expand in the market. It also concluded that the transaction would not significantly change the market structure to make coordination easier, in particular given the importance of technological innovation and a lack of transparency in the markets concerned.
Copyright RTT News/dpa-AFX