Nokia has sold Alcatel Submarine Networks (ASN), a leading submarine networks business, to the French State, represented by the Agence des participations de l’Etat (APE).
Nokia’s Alcatel Submarine Networks business has generated revenue of EUR 1.12 billion in 2023. Nokia did not reveal financial details of the dea.
Nokia has decided to sell France-based Alcatel Submarine Networks unit, its non-core business, to focus on its Network Infrastructure business in its core telecom markets and improve profit of the Network Infrastructure business group.
The transaction demonstrates Nokia’s management of its business portfolio, one of the company’s six strategic pillars, said Pekka Lundmark, President and CEO of Nokia.
Going forward, Nokia’s Network Infrastructure Business Group will comprise three units: Fixed Networks, IP Networks and Optical Networks. This is expected to reduce the net sales of Network Infrastructure by approximately EUR 1 billion but will increase its operating profit margin by 100 –150 basis points.
APE has a large portfolio of holdings across industrial sectors, services and businesses, and serves global clients.
The sale is expected to close at the end of 2024 or beginning of 2025.
