The Competition Tribunal will tomorrow hear Microsoft's proposed bid to buy Nokia's device unit, although the deal is not expected to raise significant competition or public interest concerns.
The local competition authorities are hearing the matter as the merger is considered large enough to impact the market, in which both companies have a large share through their respective units. Any large merger that may affect the economy needs to be sanctioned in terms of the Competition Act.
Nokia agreed in September to sell its devices and services business and license its patents to Microsoft in a EUR5.4 billion agreement. The handset maker's shareholders approved the offer in November, deciding the deal's financial benefits outweighed any objections to the loss of a Finnish national asset, reported Reuters.
According to the Competition Tribunal, the international transaction has already been unconditionally approved in India, Brazil, the European Union, Israel, Turkey, Russia and the US.
The Competition Commission, which assesses large mergers before referring them to the Competition Tribunal for adjudication, considered this merger and concluded that it was unlikely to raise significant competition or public interest concerns.
It has recommended the tribunal approve this deal without conditions.
Microsoft's unexpected bid for the Finnish maker's handset division has been seen as a way to solve Nokia's flagging smartphone situation and a boost for Microsoft's lagging mobile strategy. Microsoft sees the bid aiding its smartphone strategy, which will boost tablet sales and aid PC movement.
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