Nokia has recently announced the sale of its submarine cable systems to the French government in a deal worth 350 million euros. The company’s managing director, Pekka Lundmark, sees this as a positive step towards focusing on growth and technology leadership within the network infrastructure business group.
The unit, which does not have employees in Finland but employs 2,500 people mainly in France, will be sold to ASN, a leading supplier of submarine cables worldwide. Last year, the unit’s turnover was 1.1 billion euros, with more than 800,000 kilometers of optical submarine cables produced by Nokia.
Nokia aims to finalize the deal towards the end of the year or at the beginning of the next year. Following the transaction, Nokia expects a decrease in annual turnover for the network infrastructure business group but anticipates an increase in operating profit percentage.
The French Minister of Finance, Bruno Le Maire, expressed excitement over the purchase of 80 percent of ASN and thanked Nokia for its decision to streamline its product portfolio and concentrate on core markets to improve profitability. The sale will allow Nokia to focus on new opportunities and growth prospects within its network infrastructure business group while ensuring continued investments and protection of know-how through French ownership.
