EU Set to Approve Nokia's Infinera Deal Without Conditions

The European Commission is poised to clear Nokia's $2.3 billion acquisition of Infinera without imposing any conditions, according to sources familiar with the matter. This decision comes as a relief to Nokia, which has been eagerly awaiting regulatory approval for the deal it announced in June 2024.

The acquisition of Infinera, a global supplier of networking solutions, is expected to strengthen Nokia's position in the optical networking market and accelerate its product roadmap. By acquiring Infinera, Nokia aims to increase its scale in optical networks, enhance its in-house technology capabilities, and expand its customer base, particularly in the fast-growing webscale segment.

Nokia's CEO, Pekka Lundmark, expressed his optimism about the acquisition, stating that it would create significant value for shareholders by delivering over 10% comparable EPS accretion by 2027. The transaction is also expected to be accretive to Nokia's comparable operating profit and EPS in the first year post-close.

The acquisition aligns with Nokia's long-term strategy of strengthening its technology leadership in optical networks and increasing exposure to webscale customers. By combining Nokia's and Infinera's complementary customer, geographic, and technology profiles, the two companies expect to create a highly scaled and truly global optical business.

The European Commission's decision to approve the deal without conditions is a positive development for Nokia, as it paves the way for the acquisition to proceed without any regulatory hurdles. This approval is expected to be finalized by February 26, 2025, following a review period.




In conclusion, the European Commission's decision to approve Nokia's acquisition of Infinera without conditions is a significant step forward in the process of creating a highly scaled and truly global optical business. This approval aligns with Nokia's long-term strategic objectives and is expected to create substantial value for shareholders. As the deal progresses, investors will closely monitor the integration process and the realization of synergies between the two companies.