Microsoft gets clearance from Chinese authorities to purchase Nokia's devices division

Microsoft and Nokia have received clearance from the regulatory body of the People's Republic of China for their deal which would result in Microsoft acquiring Nokia's devices business unit.

It was expected that the deal between Microsoft and Nokia would complete by March but was delayed until end of April as the two companies are still seeking approval from various government agencies in Asian countries such as China and India.

Now, Nokia has announced that it has received approval from the Chinese government which was concerned about higher patent license fees for the local OEMs after the completion of the deal. In a statement issued regarding patent fees, Nokia said that, "No authority has challenged Nokia's compliance with its ... undertakings related to standard-essential patents or requested that Nokia make changes to its licensing programme or royalty terms," Nokia's stock rose 2.9% when the news of the approval first broke and reached 5.48 Euros

Nokia is still battling with tax authorities in India but has insisted that the delay in completion of its deal with Microsoft is not due to that issue. If the Finnish smartphone maker fails to reach a favourable verdict in India, it is set to lose one of its bigger manufacturing units to Indian authorities. Once the company gets approval from Indian authorities, the deal can be expected to complete soon after, as the European Union, United States and other countries have already cleared the path for the deal to go through.

Source: Yahoo! | Image via Nokia

Report a problem with article
Previous Story

Microsoft previewing new Xbox One system update changes

Next Story

OpenSSL affected by "Heartbleed" zero-day vulnerability


Commenting is disabled on this article.

Figure 8 Dash said,
Your move, India

As of now, there's no Govt running in India as Elections are going on. So the next govt will be formed by next month end.

Nokia is still battling with tax authorities in India but has insisted that the delay in completion of its deal with Microsoft is not due to that issue.
Unless there are still some countries objecting (South Korea courtesy Samsung and LG?) I'm sure the merger should be completed soon.

Figure 8 Dash said,
Your move, India

I'm sure India would gives its OK as long Nokia or Microsoft would foot the taxes bills.
It shouldn't be a problem for MSFT to foot the bill, afterall Microsoft has TONS of money floating about.

So what if they have tons of money floating around? It's not their responsibility in the least. This is Nokia's doing and they'll have to address the issue. Meanwhile the merger will continue just as planned...

I don't know what laws are in place in India, but they might be required to sort out legacy issues before they can continue trading under the new merger in that country.

I remember reading either or Neowin or elsewhere that they are going to close down the factory and shift the jobs to China or Vietnam, so production facilities for Microsoft will remain unchanged. If that's the case then the factory will no longer be part of the merger and hence Nokia's assertion that the deal won't be affected in any way.

So for example if Google merged with Samsung's phone division, or Apple with Sony's the same would take place? Seems a bit nonsensical.

Cannot wait for the devices MS bring out ...

on another note..
About the TAX, IMO I Think MS will buy some of the patents that look interesting to use and to X-Deal with other companies or be VERY nice and buy more time for the division