Telecom network vendor Nokia has received the antitrust clearance from the Chinese Ministry of Commerce (MOFCOM) for acquiring rival Alcatel-Lucent.
The clearance in China completes the material antitrust review process required for the transaction, said Nokia in a statement.
Nokia and Alcatel-Lucent are yet to receive formal approval from the Ministry of Economy (MINEFI), the French government.
Nokia will go ahead with the filing of the public exchange offer for Alcatel-Lucent securities after getting the approval from French government. However, the proposed transaction will remain subject to approval by Nokia shareholders and the successful closing of the exchange offer. The deal is expected to close in the first half of 2016.
As part of its acquisition of Alcatel-Lucent, Nokia will set up a joint venture with China Huaxin Post & Telecommunication Economy Development Center to combine Nokia’s telecom infrastructure businesses in China with Alcatel-Lucent Shanghai Bell.
Earlier, Nokia signed a Memorandum of Understanding with China Huaxin, under which Nokia would hold 50 percent plus one share in the new joint venture, which would operate under the name Nokia Shanghai Bell.
