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EU Commission Approves Nokia’s $2.3 Billion Acquisition of Infinera

By  |  February 26, 2025

The European Commission has granted unconditional approval for Nokia’s $2.3 billion acquisition of U.S.-based optical semiconductors and networking equipment manufacturer Infinera, according to Reuters. The approval, announced on Wednesday, comes after a detailed assessment by the regulatory body, which concluded that the deal poses no competition concerns.

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    Per Reuters, the Commission found that the combined market share of Nokia and Infinera in the supply of optical transport equipment would remain moderate, ensuring that there would still be strong competition in the sector. This assessment paved the way for the deal’s clearance without any conditions or remedies.

    Reuters had previously reported earlier this month that Nokia was on track to receive unconditional approval for the acquisition, which was first announced in June 2023. The transaction is expected to strengthen Nokia’s position in the optical networking market, making it the second-largest vendor with a 20% market share, behind Huawei. The Chinese telecommunications giant has continued to dominate the sector, particularly due to the limited presence of Western competitors in China.

    Related: Nokia Poised to Gain EU Approval for $2.3 Billion Infinera Acquisition

    The acquisition is also set to enhance Nokia’s ability to supply advanced networking equipment to major technology firms such as Amazon, Alphabet, and Microsoft. These companies are heavily investing in new data centers to accommodate the rapid expansion of artificial intelligence and cloud computing services. By integrating Infinera’s technology, Nokia aims to capitalize on this growing demand and expand its footprint in the high-speed optical networking industry.

    With this approval, Nokia moves one step closer to finalizing the acquisition, further solidifying its role as a key player in the global optical networking market.

    Source: Reuters