The regulatory approval from China has cleared the way for Nokia-Microsoft deal. The deal is worth $7.2 billion. The deal allows Microsoft to acquire Nokia, the Smartphone maker from Finland.
Now after China’s nod, the deal can run through this month. As a matter of fact, the deal was scheduled to be over in March itself. However, the lack of anti-trust clearance from one of the largest Asian countries was the reason why the transaction could not take place.
There was a statement from Nokia that said that Nokia and Microsoft expect that the transaction may materialize during this month. The statement further reads, “The regulatory approval process has involved a thorough review of Nokia’s patent licensing practices by several competition authorities around the world.”
After China’s approval, the list of from the regularity authorities has gone up to 16, which also includes the U.S. Federal Trade Commission, the process of which was approved in the month of November 2013. This was followed by the European Union in the ensuing month.
As and when the transaction closes Microsoft will be in a more efficient position to make an impact on Nokia. The Finnish company has given Microsoft a license for 10 years, which is a 10-year non-exclusive license towards their patents.
On the other hand, Microsoft will also grant Nokia right in a reciprocal manner that will be associated with HERE, the location services as well as mapping. Nokia will also award Microsoft with an option for extending the mutual patent agreement for infinity.
On the other hand, a statement from Microsoft says that the acquisition will give them the opportunity to augment their profits and shares, especially in the Smartphone sector. Nokia will get the cash that they so desperately needed to keep their interest in the business as well as network infrastructure.