The Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) acquisition was approved by the United States Department of Justice. The transaction was approved on November 28th. Last month, shareholders approved the deal during a meeting at the Helsinki headquarters.
The next step is through the European Union. Antitrust regulators have to decide whether this deal violates competition rules in the European Union. The commission is reported to make a final decision on December 4th on if the company would clear it. There is also the possibility of a ten day extension if needed.
Microsoft and Nokia acquisition
In September, Microsoft publicly announced their intentions or purchasing Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s services unit and devices for $7.2 billion. Prior to that, it was reported that the Redmond, Washington-based company wanted to acquire Nokia. Microsoft Corporation (NASDAQ:MSFT) CEO Steve Ballmer elaborated in a press release, “It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services.In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
Deal not likely to have adverse effect on competition
Over a month ago, ZDNet’s Zack Whitaker explained, “Over in India, authorities have already approved the deal, which kicks out another regulatory hurdle out the way. According to Indian media, authorities said the deal is ‘not likely to have appreciable adverse effect on competition.’ The bid for Microsoft Corporation (NASDAQ:MSFT) to acquire Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) will see the Redmond, Wash.-based software giant become a fully-fledged phone maker, years after it evolved its Windows Mobile platform into Windows Phone.”
Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s partnership might just be a powerful move for both companies!