leading Nokia to sign a contract with the French government.

Press release

Nokia has signed an agreement with the French government to sell its leading ASN business for undersea networks

Nokia and the French government have signed a put option for ASN worth 350 million euros. The sale is conditional upon the consultation of the relevant bodies representing the employees.

  • The deal is a sign of Nokia’s commitment to the continued growth of its business unit and concentration of operations in key areas.
  • With the deal, the network infrastructure business group’s portfolio will be better focused and its profitability will improve.
  • This agreement ensures that the Franco-European, strategically important and market-leading business continues to grow.
  • With this deal, ASN will be able to continue the good growth it has achieved as part of Nokia.
  • To ensure a smooth transition, Nokia will retain a 20% ownership stake in ASN and representation on the board until the end of the agreed period.

27.06.2024
Espoo – Nokia announced today that it has signed an offer to sell its submarine networks business Alcatel Submarine Networks (ASN) to the French government for €350 million, through its holding company Agence des participations de l’Etat (APE). This agreement is subject to consultation with the relevant employee representatives of Nokia and ASN. To ensure a smooth transition, Nokia will retain a 20% ownership stake in ASN and representation on the board until the end of an agreed period, after which the French government will buy back Nokia’s remaining shares.

ASN has been a separate business unit from Nokia’s core business, and the sale will allow Nokia to focus on growth opportunities in its Network Infrastructure business group’s core markets and improve the business group’s profitability. The proposed transaction represents Nokia’s commitment to the continued growth of its business unit, one of the company’s six strategic cornerstones.

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Nokia expects to consider ASN as a discontinued operation from the second quarter of 2024. In the future, Nokia’s Network Infrastructure business group will consist of three business units, namely: Fixed Networks, IP Networks and Optical Networks. As a result of the transaction, the annual revenue of the network infrastructure business group is expected to decrease by around one billion euros, but the operating profit percentage will increase by 1–1.5 percentage points. The transaction will not affect Nokia’s previously announced financial outlook, which was released on April 18, 2024 in its interim report for the first quarter of 2024.

ASN is a French, global market leader in submarine telecommunications networks, with a unique position in the industry as a provider of end-to-end total solutions. Under Nokia’s ownership, ASN’s turnover has grown significantly, and as the demand and importance of submarine cables continues to grow, there are good opportunities to benefit from the growth potential of this vast market.

The proposed sale of ASN to the French government is based on extensive discussions between Nokia and the French government. As a result of the negotiations, the French Government was found to be the most suitable owner for ASN, as the French Government is a sustainable owner with a long-standing interest in the construction and maintenance of critical infrastructure. This ensures continuity of operations from the perspective of ASN’s customers, employees and partners.

The French government understands the importance of ASN’s history, activities and key stakeholder relationships and has shown its full support for ASN’s leadership and current strategy. The French government is committed to continuing to invest in ASN’s business and supporting its vertically integrated technology portfolio in a sustainable way.

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As a French state-owned company, APE has significant stakes in many industrial, service and corporate sectors and serves its clients worldwide. When ASN is owned by APE, the French government ensures the future of a strong French and European operator in a globally competitive market.

The intention is for the transaction to be completed by the end of 2024 or early 2025, after formal consultation by ASN’s French working group and other customary conditions and regulatory approvals relating to the transaction.

Nokia CEO Becca Lundmark: “This transaction is a step forward in our strategy, which includes the continuous development of our business portfolio. ASN is a separate business unit from Nokia’s core business. Through the transaction, the product portfolio of the Network Infrastructure business group will become clearer. ASN has focused on the development and strengthening of technology leadership, and in recent years, ASN has a strong market position in this important sector.”

ASN CEO Alain Pistone: “This is a great opportunity for ASN and takes us to the next stage of development. The French state ownership gives us a solid foundation to build our vertically integrated technology portfolio. This, along with Nokia’s retained ownership, demonstrates the shared desire of all parties to ensure a smooth transition for customers, suppliers and other stakeholders. do it.”

French Economy and Finance Minister Bruno Le Maire: “The French Government, represented by the Agence des Participations de l’Etat (State Holding Agency), is excited to announce its intention to acquire 80% of ASN. The company is one of the world’s leading suppliers of submarine cables and the only European player in its field.”

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Consultant
BNP Paribas is acting as financial advisor to Nokia, Skadde as legal advisor and ReLIANS (Pascal Dupeyrat, Jean-Christophe Martin) as strategic and organizational advisor.

Nokia
Nokia creates technology that helps the world work together.

As a B2B technology and innovation leader, we are a pioneer in sensing, thinking and intelligent network solutions for the future. Our leading position is based on our expertise in mobile, landline and cloud service networks. We create value through intellectual property rights and long-term research and development led by award-winning Nokia Bell Labs.

Service providers, enterprises and our other partners around the world trust the performance, reliability and security standards of Nokia’s networks. We work with our partners to develop future digital services and applications.

A.S.N
ASN, part of Nokia, is the industry leader in terms of data transmission capacity and number of installed base stations. It has more than 750,000 km of optical submarine cables worldwide or 19 times around the world.

As the industry’s only provider of end-to-end integrated solutions, ASN offers all components of a global undersea data transmission system tailored to customer needs, from traditional telecom applications to content and OTT service providers’ infrastructures and power applications.

The comprehensive offering of submarine cable operations is complemented by a wide range of services that include project management, installation and commissioning, as well as marine and maintenance operations performed by ASN’s cable vessels.

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Nokia
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