) is set to close the deal with
) after receiving clearance from the European Commission (EU).
The transaction is expected to be completed by end of the first
quarter of 2014 as was scheduled.
A few days back, got the nod from both the US Department of
Justice (DOJ) and Federal Trade Commission (FTC). Earlier, the
company had secured shareholders' approval.
Last Sep, Microsoft decided to acquire Nokia's handset business
for $7.2 billion (5.44 billion euros). The strategic decision is
expected to benefit both the tech giants and form a formidable
force in the smartphone business.
According to research firm IDC, Nokia does not feature among the
top five smartphone sellers in the third quarter of 2013 while
Microsoft's Windows operating system holds the third place with a
mere 3.6% market share. Both
) Android and
) iOS operating platform dominate with 81% and 12.1% market
share, respectively. Likewise, Samsung and Apple lead the
smartphone sales in the same quarter with 31.4% and 13.1% market
Earlier, Nokia lacked a user-friendly operating system which
massively deteriorated its handset sales. In order to counter the
competition from rivals like Samsung and Apple, it collaborated
with Microsoft to offer user-friendly Lumia smartphones powered
with the Windows operating platform, thereby sidelining its own
Symbian operating system.
Such strategic partnerships have aided Nokia in improving the
smartphone sales. In the recently concluded third-quarter 2013,
the company sold 8.8 million Lumia smartphones, up 40% from the
Hence, we believe that Nokia will benefit from the recent merger.
However, it is yet to be seen how Microsoft deals with its
Windows mobile platform as it also supplies to other third-party
equipment manufacturers like Samsung and HTC.
Nokia currently carries a Zacks Rank #3 (Hold).
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