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Is It The Wind Of Change?

14 April 2015 by lberuti

This morning we saw more stories of potential M&A in the TMT sector. There have been articles out regarding NOKIA ( Nokia Oyj ) potentially buying ALUFP ( Alcatel Lucent SA ). Previously stories were based around NOKIA buying some parts of the business, but the talks now seem to be of a complete purchase. And the most surprising bit is the attitude of the French government, which in the past has been notorious for blocking takeovers of its so-called industrial jewels. Well, not this time. Intense competition from Chinese telecommunication-equipment makers like Huawei and ZTE appears to have brought a “whiff of pragmatism to the corridors of power” as some columnists put it. Over the last nine months, the French government has actually been facilitating the deal, taking part in the talks between NOKIA and ALUFP, and de facto acknowledging that ALUFP would face an uphill battle to survive as a stand-alone company in a brutal market.