Nokia and Alcatel-Lucent to change the market after merger

Monday, January 25, 2016

There is a relatively new kid on the block now. Nokia and Alcatel-Lucent, which have previously received approval from U.S. and European antitrust regulators for their merger, have started working as an operationally combined group on January 14. Seeing the Alcatel-Lucent is our client, we’ve watched the negotiations and merger closely, analysing what this means for the general market.

Firstly, there is the matter of merger-related cost savings – instead of covering the costs of two companies, the new company could cut back on a variety of things, including marketing, logistics, etc. Also, the enlarged company could get more pricing power to negotiate with big customers. With this merger, Nokia aims to lift the merged companies into the same revenue league as market leaders, Ericsson AB of Sweden and Huawei Technologies Co. of China.

Not to mention that the merger of two very innovative and productive companies, who held the market with their modern and creative products for years, will surely bring about some interesting new technologies and features. There is a lot to be seen in the future.
We are glad we will be in front rows during this time, given our cooperation with Alcatel-Lucent, and we look forward to seeing what these industry moguls cook up for us in the future.