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Monday, March 24, 2014
Nokia, Microsoft Deal Delayed
Nokia on Monday announced that it now expects the transaction whereby the company will sell substantially all of its Devices & Services business and license its patents to Microsoft to close in April 2014.
Nokia's previously expected the transaction to close by the end of March.
Nokia did not disclose the reasons behind the delay, saying that the closing of the transaction is subject to regulatory approvals and other customary closing conditions.
Nokia and Microsoft have already received most of the required regulatory approvals, including approvals from the European Commission and the U.S. Department of Justice. However, the transaction is pending approvals from certain antitrust authorities in Asia which are still conducting their reviews.
"Nokia and Microsoft continue to be confident that the transaction will close, resulting in the sale of substantially all of Nokia's Devices & Services business to Microsoft, and both companies are working diligently to close the transaction as expeditiously as possible," the companies said.
Earlier this month, media reports said Google and Samsung Electronics had asked Chinese regulators to ensure the deal between Microsoft and Nokia would not lead to higher licensing fees.
Nokia last week was hit with a new $414 million tax claim by Indian authorities, following a recent Supreme Court decision to order Nokia to give a $571 million guarantee before transferring its Chennai factory to Microsoft.
Nokia reiterated its tax disputes in India would not have an impact on the deal schedule.