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

By  |  February 16, 2025
Nokia

Nokia is on track to receive unconditional European Union antitrust clearance for its planned $2.3 billion acquisition of U.S.-based optical semiconductors and networking equipment manufacturer Infinera, according to sources with direct knowledge of the matter, per Reuters.

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    The Finnish telecommunications giant initially announced the deal in June 2023, aiming to strengthen its position in the optical networking market. Should the acquisition proceed as expected, Nokia would become the second-largest vendor in the sector, securing a 20% market share. This would place it behind China’s Huawei, which has been capitalizing on the limited presence of Western firms in the Chinese market, according to Reuters.

    A key strategic objective behind the acquisition is to expand Nokia’s ability to supply equipment to major technology firms, including Amazon, Alphabet, and Microsoft. These companies are channeling significant investments into developing new data centers to support the surging demand for artificial intelligence applications.

    Related: EU Commission Drops Tech Patent, AI, and Privacy Regulations Amid Legislative Deadlock

    The European Commission, which is currently conducting a preliminary review of the transaction, is expected to reach a decision by February 26. However, it declined to comment on the matter, per Reuters.

    Nokia, for its part, has pointed to its financial statement released on January 30, reaffirming its expectation to finalize the acquisition within the first quarter of 2024. Infinera, a key player in intra-data center communications—facilitating server-to-server interactions within data facilities—derives approximately 60% of its revenue from the United States.

    Source: Reuters